This tool provides the ability to plan a sequential lot acceptance test where each unit is classified into one of two categories, good or defective. It is based on the work of Abraham Wald (Ref. 2). The following shows the possible sampling outcomes and the preferences for test decision outcome. "true p" in the example column below is the true proportion defective in the lot if all units were to be inspected.
See reference 2, Chapter 5, "Testing the Mean of a Binomial Distribution (Acceptance Inspection of a Lot Where Each Unit is Classified Into One of Two Categories)" for additional details.

Calculator input parameters are as follows:

- Unacceptable proportion defective (p
_{1}). The probability of accepting the lot does not exceed the consumer's risk (β) whenever the true proportion defective (p) is greater than or equal to p_{1}. - Acceptable proportion defective (p
_{0}). The probability of rejecting the lot does not exceed the producer's risk (α) whenever the true proportion defective (p) is less than or equal to p_{0}. - Consumer’s risk (β). The consumer’s risk is the probability of accepting a lot with a true proportion defective equal to or greater than the unacceptable proportion defective (p
_{1}). β probability of lot acceptance for Case 1. - Producer’s risk (α). The producer’s risk is the probability of rejecting a lot with a true proportion defective equal to or less than the acceptable proportion defective (p
_{0}). α probability of lot rejection for Case 3. - True p. The true proportion defective in the lot if all units were to be inspected.