SCENARIO 15-1
a Local Newspaper Has 10 Delivery Boys Who

question 97

Multiple Choice

SCENARIO 15-1
A local newspaper has 10 delivery boys who each deliver the morning paper to 50 customers every day.The owner decides to record the number of papers delivered on time for a 10-day period for one of the delivery boys and construct a p chart to see whether the percentage is too erratic. $$\begin{array} { c c } \text { Day } & \begin{array} { c } \text { Number of Papers } \\\text { DeliveredonTime }\end{array} \\\hline 1 & 46 \\2 & 45 \\3 & 46 \\4 & 45 \\5 & 43 \\6 & 48 \\7 & 46 \\8 & 49 \\9 & 48 \\10 & 47\end{array}$$
-Referring to SCENARIO 15-1, what is the numerical value of the lower control limit for the pchart?

• A)0.920
• B)0.911
• C)0.815
• D)0.798

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Definitions:

External Benefit

A benefit gained by individuals or firms not directly involved in a transaction, leading to positive side effects or spillovers.

Private Cost

The direct cost that producers or consumers incur through their actions, not including externalities.

Private Value

Refers to the value that an individual or a private entity assigns to a good or service, based on personal assessment rather than market perception.

Economists

Experts in economics who study, develop, and apply theories and concepts about how economies work and distribute resources.