The Producers of the Yugo Automobile Periodically Inspect Samples of 80

question 30

Multiple Choice

The producers of the Yugo automobile periodically inspect samples of 80 hoods for dents and scratches. A single flaw in a hood renders it unsuitable for installation in one of their fine automobiles. The results of the last 10 samples are shown.. What are the lower and upper control limits for the np chart?

• A) (-8.35, 2.8)
• B) (2.8, 8.35)
• C) (0.3, 17.1)
• D) (8.7, 17.1)
• E) (0.4, 8.7)

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Sales Increase

A rise in the number of products or services sold, often indicating a growth in a company's business activities and revenue.

Risk/Reward Tolerance

An individual's or entity’s capacity to assume risk with the expectation of receiving a corresponding return, balancing between potential gains and losses.

Venture Opportunities

Potential business concepts or markets that offer the chance for financial returns through the creation or expansion of enterprises.