A Quality Control Program Is Being Developed for Batteries

question 13

Multiple Choice

A quality control program is being developed for batteries.The percent defective for these in the past has been 3%.If a sample size of 120 is taken,what would the 99.7% upper control chart limit be?

• A)0.0812
• B)0.0767
• C)0.0611
• D)0.0307
• E)0.0471

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain period.

Buyer

An individual or entity that acquires or has the intention to acquire goods or services from another entity in exchange for money.

Exercise Price

The cost at which an options contract holder has the right to purchase (in the case of a call option) or sell (with a put option) the base asset.

Put Option

It's a financial arrangement granting someone the choice, but excluding the duty, to dispose of an allocated quantity of an essential asset at a certain value within an allotted interval.