The Width of a Gold Bar Is Intended to Be

question 134

Essay

The width of a gold bar is intended to be 0.42 cms. Inspection samples contain six bars each. The average range of these samples is 0.007 cms. What are the upper and lower control limits for the x-bar and R-chart for this process, using 3-sigma limits?

---

Definitions:

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards and procedures used in the United States by accountants to compile financial statements.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing shareholders' equity.

Greenmail

A strategy where a company buys back its own shares at a premium from a potential acquirer to prevent a takeover attempt.

Takeover Attempt

An effort by one company to acquire control of another company, often through the purchase of a significant portion of its stock.