A Major Customer for a Vendor of Plastic Containers Requires

question 20

Multiple Choice

A major customer for a vendor of plastic containers requires that its containers have a volume of 10,000 cubic inches with a tolerance of 50 cubic inches.Forty subgroups of five containers each were selected periodically from the production process.The average of the means across all subgroups was found to be 10,012 cubic inches and the average range was 48 cubic inches.The estimated process standard deviation () is ________________________ .

• A)48 cubic inches
• B)22.69 cubic inches
• C)20.64 cubic inches
• D)50 inches
• E)32.99 cubic inches

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Definitions:

Price-Earnings Ratio

A valuation metric for companies, calculated by dividing a company's share price by its earnings per share.

Earnings

The amount by which revenues exceed expenses.

Stockholders

Individuals or entities that own shares of stock in a corporation, thereby having a residual claim on the company's assets and earnings.

Solvency

This financial term refers to an entity's ability to meet its long-term financial obligations, indicating financial stability.