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SCENARIO 18-6
the Maker of a Packaged Candy Wants to Evaluate

question 51

True/False

SCENARIO 18-6
The maker of a packaged candy wants to evaluate the quality of her production process. On each of
16 consecutive days, she samples 600 bags of candy and determines the number in each day's sample
that she considers to be of poor quality. The data that she developed follow.  Day  Number  Poor  Proportion  Poor 1330.05500002290.04833333310.05166674320.05333335430.07166676450.07500007460.07666678480.08000009480.080000010460.076666711280.046666712320.053333313280.046666714320.053333315310.051666716240.0400000\begin{array} { r c c } \underline {\text { Day }} & \begin{array} { c } \text { Number } \\\underline {\text { Poor }}\end{array} & \begin{array} { c } \text { Proportion } \\\underline {\text { Poor }}\end{array} \\1 & 33 & 0.0550000 \\2 & 29 & 0.0483333 \\3 & 31 & 0.0516667 \\4 & 32 & 0.0533333 \\5 & 43 & 0.0716667 \\6 & 45 & 0.0750000 \\7 & 46 & 0.0766667 \\8 & 48 & 0.0800000 \\9 & 48 & 0.0800000 \\10 & 46 & 0.0766667 \\11 & 28 & 0.0466667 \\12 & 32 & 0.0533333 \\13 & 28 & 0.0466667 \\14 & 32 & 0.0533333 \\15 & 31 & 0.0516667 \\16 & 24 & 0.0400000\end{array}
-Referring to Scenario 18-6, the process seems to be in control.


Definitions:

Foreign Competition

Competition that domestic companies face from abroad, from foreign companies offering the same or similar products or services.

Health Care Provider

An individual or institution that provides medical services, including doctors, nurses, hospitals, and clinics.

Market Price

The current price at which an asset or service can be bought or sold in an open market.

Government Intervention

Actions taken by a government to influence or regulate economic activity, often to correct market failures and achieve desired social or economic outcomes.

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