I have this question.
"Units of different lengths are produced. If a unit has length greater than 10 metres it is defective. Lengths are assumed to be normally distributed, $ N(\mu,0.01)$ - that is, the variance is 0.01.
The batch is accepted if the sample mean, of size $ n $ units, is less than $ k $ .
Find $ n $ and $ k $ such that a batch with 0.1% defectives is accepted with probability 90% and a batch with 1% defectives is accepted with probability 5%. Ans: k=9.73, n=15."
(1) I tried using this formula to handle the variation in $ \mu $.
$ n $ = $ (Z_\alpha + Z_\beta)^2{\sigma}^2$/$(\Delta_\mu)^2$
You get this by getting two equations using the probabilities of a Type I or Type II error and eliminating the sample mean between these.
(2) Another way is to use the Poisson distribution, noting that $ \lambda = np$, where $p_1 = 0.01 $ and $p_2 = 0.1 $. This leads to selecting a sample of about 50, on checking the ratio $p_1/p_2 $ through appropriate tables. If there is more than one defective unit the batch is rejected. But, this does not take account of the prior knowledge about $\mu$.