Ophelia O'Brien, VP of Consumer Credit of American First Banks

question 51

Multiple Choice

Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB) , is designing a p chart to monitor the default rate on personal loans at the AFB member banks.Her data include the proportion in default for 30 samples of personal loans.Each sample contains 50 loans, and the average of the 30 proportions is 0.05.The upper control limit for Ophelia's p chart is _____________.

• A)0.0925
• B)0.0500
• C)0.0308
• D)0.1825
• E)0.1425

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period.

Two-part Tariff

A pricing strategy that includes a fixed fee plus a variable fee based on consumption or usage level.

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.