Create X-Bar and R Charts

question 13

Multiple Choice

Create X-bar and R charts.
-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 lower and upper control limits for the R chart
Are

• A) 0.2992 and 4.1008 mg.
• B) 0 and 4.4088 mg.
• C) 0.136 and 1.864 mg.
• D) 2.1999 and 30.152 mg.
• E) 0.2493 and 3.4167 mg.

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Definitions:

Discounted Free Cash Flow

A valuation method that estimates the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Market Value

The ongoing market rate for buying or selling a product or service in the open market environment.

Discounted Free Cash Flow Approach

A valuation method that estimates the value of an investment based on its expected future cash flows, discounted back to their present value.

Free Cash Flows

The amount of cash generated by a business after accounting for capital expenditures, available for distribution among all the securities holders of an entity.