DEFINITION of 'Acceptance Sampling'
A statistical measure used in quality control. A company cannot test every one of its products due to either ruining the products, or the volume of products being too large. Acceptance sampling solves this by testing a sample of product for defects. The process involves batch size, sample size and the number of defects acceptable in the batch. This process allows a company to measure the quality of a batch with a specified degree of statistical certainty without having to test every unit of product. The statistical reliability of a sample is generally measured by a tstatistic.
BREAKING DOWN 'Acceptance Sampling'
Probability is a key factor in acceptance sampling, but it is not the only factor. If a company makes a million products and tests 10 units with one default, an assumption would be made on probability that 100,000 of the 1,000,000 are defective. However, this could be a grossly inaccurate representation. More reliable conclusions can be made by increasing the batch size higher than 10, and increasing the sample size by doing more than just one test and averaging the results. When done correctly, acceptance sampling is a very effective tool in quality control.

Sampling
A process used in statistical analysis in which a predetermined ... 
Sample
A subset containing the characteristics of a larger population. ... 
Sampling Error
A statistical error to which an analyst exposes a model simply ... 
Systematic Sampling
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Sampling Distribution
A probability distribution of a statistic obtained through a ...

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Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample. 
Professionals
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Fundamental Analysis
How Does Sampling Work?
Sampling is a term used in statistics that describes methods of selecting a predefined representative number of data from a larger data population. 
Fundamental Analysis
What is a Representative Sample?
In statistics, a representative sample accurately represents the makeup of various subgroups in an entire data pool. 
Fundamental Analysis
Explaining Standard Error
Standard error is a statistical term that measures the accuracy with which a sample represents a population. 
Fundamental Analysis
Explaining the Central Limit Theorem
Central limit theorem is a fundamental concept in probability theory. 
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Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroupâ€™s ... 
Fundamental Analysis
Understanding the Simple Random Sample
A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen. 
Professionals
Calculating Confidence Intervals
CFA Level 1  Confidence Intervals  Calculations 
Professionals
Interpreting Statistical Results
CFA Level 1  Test Statistics and Interpreting Results

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