SCENARIO 18-4
a Factory Supervisor Is Concerned That the Time

question 5

Multiple Choice

SCENARIO 18-4
A factory supervisor is concerned that the time it takes workers to complete an important production
task (measured in seconds) is too erratic and adversely affects expected profits. The supervisor
proceeds by randomly sampling 5 individuals per hour for a period of 10 hours. The sample mean and
range for each hour are listed below. $$\begin{array} {ccc} \underline {\text { Hour }} & \underline { \bar { X } } & \underline { R } \\1 & 18.4 & 25 \\2 & 16.9 & 27 \\3 & 23.0 & 30 \\4 & 21.2 & 23 \\5 & 21.0 & 24 \\6 & 24.0 & 25 \\7 & 19.3 & 12 \\8 & 15.8 & 14 \\9 & 20.0 & 13 \\10 & 23.0 & 11\end{array}$$ She also decides that lower and upper specification limit for the critical-to-quality variable should be
10 and 30 seconds, respectively.
-Referring to Scenario 18-4, suppose the sample mean and range data were based on 6 observations per hour instead of 5. How would this change affect the lower and upper control
Limits of an R chart?

• A) LCL would increase; UCL would decrease.
• B) LCL would remain the same; UCL would decrease.
• C) Both LCL and UCL would remain the same.
• D) LCL would decrease; UCL would increase.

---

Definitions:

Statement of Owner's Equity

The Statement of Owner's Equity shows changes in the equity of a business over a period, including contributions, withdrawals, and earnings.

Income Statement

A financial statement showing a company's revenues, expenses, and net income or loss over a specific period.

Other Income

Income derived from sources other than a company's primary business operations, such as interest or rental income.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.