A P-Chart Has Been Developed for a Particular Item

question 35

Essay

A p-chart has been developed for a particular item.In the past, 4% of such items have been found to be defective.If a sample of 100 is taken, and 9 of these are found to be defective, should the process be considered out of control based on 95.5% control limits? Explain.

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Definitions:

12b-1 Fee

A fee charged by mutual funds to cover distribution and marketing expenses, included in the fund's expense ratio and paid by its shareholders.

NAV

Net Asset Value, the total value of all the securities in an investment portfolio minus any liabilities, divided by the number of shares outstanding.

Asset Growth

The increase in the value of a company's assets over time, which can be due to investment returns or contributions.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage level and financial health.