Samples of 100 Checks Each Were Taken at a Bank

question 18

Multiple Choice

Samples of 100 checks each were taken at a bank from an encoding machine (which records the amount of a check) over a five-day period.Details are summarized in the Table 6.3.If the bank were to use the average proportion defective from these five samples as the central line for a process control chart,what would be the central line?

• A) less than or equal to 0.01
• B) greater than 0.01 but less than or equal to 0.02
• C) greater than 0.02 but less than or equal to 0.03
• D) greater than 0.03

---

Definitions:

Economic Growth

The increase in the amount of goods and services produced by an economy over a period of time.

Declining Savings

A situation where the amount of money saved by individuals or entities decreases over time.

Productivity Growth

An increase over time in the output of goods and services per unit of input, reflecting improvements in technology, processes, or efficiency.

Savings Rate

The proportion of disposable income that individuals or households save rather than spend on consumption.