(Situation B) a Manufacturing Company Makes Hemostats for Hospital Emergency

question 6

Multiple Choice

(Situation B) A manufacturing company makes hemostats for hospital emergency rooms. The company is interested in implementing statistical process control procedures in its production operation. The production manager believes that the proportion of defective hemostats generated by the process is about 3%. The company collected one sample of 300
consecutively manufactured hemostats each day for 20 days. The data are shown below. $$\begin{array} { c c c c c c } \hline \text { Sample } & \text { Sample Size } & \text { Defectives } & \text { Sample } & \text { Sample Size } & \text { Defectives } \\\hline 1 & 300 & 8 & 11 & 300 & 12 \\2 & 300 & 6 & 12 & 300 & 11 \\3 & 300 & 11 & 13 & 300 & 14 \\4 & 300 & 15 & 14 & 300 & 8 \\5 & 300 & 12 & 15 & 300 & 7 \\6 & 300 & 11 & 16 & 300 & 3 \\7 & 300 & 9 & 17 & 300 & 9 \\8 & 300 & 6 & 18 & 300 & 11 \\9 & 300 & 5 & 19 & 300 & 10 \\10 & 300 & 4 & 20 & 300 & 6 \\\hline\end{array}$$
-Calculate the centerline used in constructing a $\mathrm { p } \text {-chart. }$

• A) .0317
• B) .0297
• C) .0593
• D) .0245

Understand the concept of the production possibilities curve (PPC) and its implications on resource use and efficiency.

Comprehend the law of comparative advantage and how it influences trade and specialization decisions.

Recognize the factors that can shift the PPC inward or outward, signifying changes in an economy's potential output.

Identify the opportunity costs associated with various production choices and their relevance to economic decision-making.

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Definitions:

Consolidation

The act of combining multiple entities, assets, or processes into a single, more effective and efficient structure.

Liabilities

Financial obligations or debts that a company or individual owes, which are recorded on the balance sheet and must be settled over time.

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Subsidiary Corporation

A corporation wholly owned by another corporation (the parent corporation).