In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ: worsens (AOQ becomes a larger fraction). improves (AOQ becomes a smaller fraction). is not affected, but the AQL is improved. is not affected. falls to zero.

When using this technique, the AOQ:

improves (AOQ becomes a smaller fraction).

Step-by-step explanation:

AOQ simply means Average Outgoing Quality, which improves with inspection.  It is a part of an organization's Acceptance Sampling Plan, usually designed to meet product quality and risk level targets.  The plan draws samples from a population of items.  Then it tests the samples.  It only accepts the entire population if the sample is considered good enough.  It also rejects the population when the sample is poor enough.  In the plan, information about sample size and critical acceptance or rejection numbers are clearly indicated.  Acceptance sampling is common in most business environments because it has been found to be more economical than doing 100% inspection of incoming production input and output.