A note on the sample size required in sequential tests for the generalized binomial distribution

In this paper, we discuss the sample size needed to perform Wald's sequential statistical test for the proportion of non-conforming items generated by a process when the results of the inspections are correlated and the generalized binomial distribution proposed by Madsen (1993) is used. It will be shown that, in the presence of correlation, the sample size increases as the value of the coefficient of correlation increases--being much higher for processes with small failure rates.