Estimate the Process Standard Deviation

question 7

Multiple Choice

Estimate the process standard deviation.
-A company that manufactures health food snacks produces low sodium rice chips. To
Monitor the process for sodium levels, chips are selected periodically and the amount of
Sodium (mg) measured. For each of thirty samples consisting of 8 chips, the mean and
Range in sodium content is determined. The average of the means across all samples is 55
Mg and the average range is 2.2 mg. The estimated process standard deviation (σˆ ) is

• A) 0.773 mg.
• B) 2.683 mg.
• C) 0.073 mg.
• D) 16.176 mg.
• E) 1.833 mg.

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Definitions:

Units

The individual elements or items produced or available in some quantity.

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw material and labor costs.

Fixed Cost

Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.