An Operator Wants to Determine the Standard Deviation for a Machine

question 1

Multiple Choice

An operator wants to determine the standard deviation for a machine she operates. To do this, she wants to create a p-chart. Over a month's time, she collects 30 samples of 75 observations each and records the number of errors. The average proportion defective is found to be 0.024. Which of the following is the standard deviation ( ) of the machine?

• A) Less than or equal to 0.1
• B) More than 0.1 but less than or equal to 0.5
• C) More than 0.5 but less than or equal to 1.0
• D) More than 1.0

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Definitions:

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; commodities are often used as inputs in the production of other goods or services.

Comparative Advantage

The competency of a country, individual, corporation, or region to manufacture a good or provide a service at a reduced opportunity cost than that of its competition.

Relative Efficiency

A measure of how effectively an entity (such as a firm or economy) utilizes its resources compared to another, often used to identify opportunities for improvement.

Absolute Efficiency

A state where resources are allocated in the most effective way possible, achieving maximum output with given inputs.