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

question 68

Short Answer

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, what is the value of $d _ { 2 }$ factor?

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Definitions:

CCA Class

In tax terminology, specifically for Canadian taxation, a system categorizing business assets for the purpose of depreciation calculation.

Turret Lathe

A type of lathe that allows multiple machining operations, like drilling and cutting, to be performed sequentially on a workpiece without repositioning it.

After-Tax Cost of Debt

The net cost of debt after the effects of income tax deductions on interest payments are considered.

Corporate Tax Rate

The percentage of a corporation's income that it pays as taxes to the government.