(Situation E) a Machine at K-Company Fills Boxes with Bran

question 38

Essay

(Situation E) A machine at K-Company fills boxes with bran flake cereal. The target weight for the filled boxes is 24 ounces. The company would like to use control charts to monitor the performance of the machine. The company decides to sample and weigh 10 consecutive boxes of cereal at randomly selected times over a two-week period. Twenty measurement times are selected and the following information is recorded. $$\begin{array} { c c c c c c } \hline \text { Time } & \text { Mean (oz) } & \text { Range (oz) } & \text { Time } & \text { Mean (oz) } & \text { Range (oz) } \\\hline 1 & 23.8 & 1.05 & 11 & 24.5 & 1.21 \\2 & 24.5 & 0.85 & 12 & 24.7 & 0.65 \\3 & 23.9 & 1.12 & 13 & 24.0 & 0.55 \\4 & 24.2 & 0.95 & 14 & 25.5 & 3.21 \\5 & 23.7 & 1.22 & 15 & 24.2 & 1.25 \\6 & 23.5 & 1.42 & 16 & 24.4 & 1.35 \\7 & 24.2 & 1.02 & 17 & 24.5 & 0.98 \\8 & 24.4 & 1.10 & 18 & 25.0 & 1.30 \\9 & 24.1 & 0.75 & 19 & 24.1 & 0.88 \\10 & 24.2 & 0.60 & 20 & 24.2 & 1.01\end{array}$$
-Does the following control chart represent a process that is in control or out of control? If it is out of control, explain how you arrived at this conclusion.

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A collection of stocks held by an individual or institution, designed to achieve specified financial goals.

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A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Interest Rate Risk

The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.