A Powder Metal Manufacturing Company Is Producing Sleeves for a Locking

question 27

Multiple Choice

A powder metal manufacturing company is producing sleeves for a locking mechanism.The target (nominal) value for the inside diameter is 1 inch.The inside diameter specifications are 1 ± .005 inches.Assume that the process is in statistical control with = 1.0002 inches, = .003 inches,and subgroup size of 5.Determine the estimated number of standard deviations of process leeway.

• A)3
• B)1.667
• C)3.72
• D)1.443
• E).72

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Definitions:

Normal Good

A good for which demand increases as the income of consumers increases, showing a direct relationship between income and demand.

Inferior Good

A type of good for which demand decreases when the income of consumers increases, inversely related to income changes.

Indifference Curves

Curves that represent the locus of various points indicating combinations of goods giving equal satisfaction and utility to the consumer.

Inferior Good

A category of product that sees reduced demand as the income levels of buyers rise.