SCENARIO 8-12-A
You Are the Quality Control Manager of a Water

question 42

Short Answer

SCENARIO 8-12-A
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. To collect evidence before
implementing any modification to the production process, your department has subjected 50 water
bottles to a durability test and the following data on the number of times the handles have been used
to lift the bottles before they break are contained in the file SCENARIO 8-12-A.XLSX. $$\begin{array} { l l l l l l l l l l } 495 & 499 & 502 & 500 & 491 & 498 & 498 & 495 & 488 & 516 \\513 & 486 & 504 & 503 & 493 & 504 & 489 & 500 & 495 & 499 \\501 & 507 & 511 & 496 & 486 & 497 & 510 & 504 & 493 & 482 \\511 & 502 & 520 & 514 & 486 & 514 & 500 & 505 & 512 & 500 \\504 & 498 & 503 & 514 & 474 & 489 & 488 & 506 & 517 & 490\end{array}$$ Assume that and the number of times the handles have been used to lift the bottles before they break
follows a normal distribution.
-Referring to Scenario 8-12-A, the sampling error of the 95% confidence interval for the mean
number of times the handles have been used to lift the bottles before they break is _____.

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Definitions:

Interest-Burden Ratio

A financial metric that shows how much of a company's income is consumed by interest expenses.

Debt

Debt refers to the amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

ROA

Return on Assets, a financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

DuPont Analysis

DuPont Analysis is a financial evaluation method breaking down return on equity into three components: operating efficiency, asset use efficiency, and financial leverage, to identify what drives a company's profitability.