SCENARIO 15-4
a Factory Supervisor Is Concerned That the Time

question 235

Multiple Choice

SCENARIO 15-4
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.
$$\begin{array} { cc c } \underline { \text { Hour } } & \underline { X } & \underline { R } \\1 & 18.4 & 25 \\2 & 16.9 & 27 \\3& 23.0 & 30 \\4 & 21.2 & 23 \\5 & 21.0 & 24 \\6 & 24.0 & 25 \\7&19.3&12\\8 & 15.8 & 14 \\9 & 20.0 & 13 \\10 & 23.0 & 11\end{array}$$ 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 15-4, 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:

Compensating Variation

A monetary measure of the amount of income required to return an individual to their original utility level after a price change.

Price Increase

A rise in the cost of goods or services, which can occur due to various factors including increased production costs, higher demand, or inflation.

Optimal Bundle

The combination of goods and services that maximizes an individual's utility given their budget constraint.

Original Prices

The initial cost or value of goods and services before any discounts, markdowns, or adjustments.