Though Only Seven Averages and Range Values Are Available, the Engineers

question 3

Essay

Though only seven averages and range values are available, the engineers studying the olive bottle filling process have decided to create X-bar and R charts for the samples measuring the air gap in the bottle. Upon viewing the charts, it became obvious that the 4^th point has an assignable cause. Investigation revealed that the corks for this batch had not been placed at the correct depth in the bottle, thus resulting in the large air gap exhibited by the 4^th point. Adjustments have been made to the machinery and this problem is not expected to reappear. Revise the control chart. Assume an assignable cause has been found for the 4^th point and remove this point from the chart. Calculate the new limits.

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Definitions:

Excess Fair Value

The amount by which the fair value of an asset exceeds the cost of acquisition or the carrying amount in the company's financial statements.

Investment Account

A financial account held at a financial institution that holds securities, shares, and other investment assets for the investor.

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted based on the investor's share of the investee's profits or losses.

Acquisition Combination

The process of uniting two or more entities into one, typically through the purchase of one by another, and integrating their operations.