Standard inspection methods underestimate the true number of defects o
r nonconformities in a complex product (e.g., automobile, mobile home,
airplane, circuit board, computer program) when an inspector is unabl
e to identify every defect with certainty. A nonlinear statistical mod
el with a nonlinear constraint is developed for estimating the unknown
number of defects in a product when inspection is imperfect. A sequen
tial defect removal sampling plan is defined in which two or more insp
ectors examine in sequence a product or sample of products and then ma
rk or correct any observed defects prior to the next inspection. The n
umber of defects identified by each inspector provides the information
needed to estimate the number of defects in the product in addition t
o the number of defects that have eluded all inspectors. A goodness-of
-fit test of model assumptions is presented. A test of hypothesis rega
rding the unknown number of defects in quality improvement experiments
also is described.