SCENARIO 19-4 A Factory Supervisor Is Concerned That the Time It Takes

question 26

Multiple Choice

SCENARIO 19-4
A factory supervisor is concerned that the time it takes workers to complete an important production task (measured in seconds) is too erratic and adversely affects expected profits.The supervisor proceeds by randomly sampling 5 individuals per hour for a period of 10 hours.The sample mean and range for each hour are listed below.
She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds,respectively.
-Referring to Scenario 19-4,suppose the sample mean and range data were based on 6 observations per hour instead of 5.How would this change affect the lower and upper control limits of an R chart?

• A)LCL would increase;UCL would decrease.
• B)LCL would remain the same;UCL would decrease.
• C)Both LCL and UCL would remain the same.
• D)LCL would decrease;UCL would increase.

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Definitions:

Non-Controlling Interest

A share in the equity and profits of a subsidiary that are not owned by the parent company.

Goodwill Impairment

A write-down that occurs when the fair value of a company's goodwill asset is less than its recorded (carrying) cost, indicating a decline in the value of acquired businesses.

Net Increase

The difference between the current and previous period's amounts, indicating growth when positive.

Investment Account

An account held at a financial institution that is used to buy and hold various investment assets, like stocks, bonds, mutual funds, and ETFs, often used for long-term financial goals.