SCENARIO 2-19-B
You Are the Quality Control Manager of a Water

question 230

Essay

SCENARIO 2-19-B
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 Scenario2-19-DataB.XLSX. $$\begin{array} { l l l l l l l l l l } 493 & 506 & 515 & 491 & 500 & 505 & 517 & 510 & 506 & 503 \\503 & 491 & 495 & 496 & 496 & 505 & 493 & 486 & 504 & 483 \\514 & 494 & 497 & 501 & 493 & 490 & 510 & 494 & 494 & 495 \\494 & 486 & 495 & 506 & 506 & 507 & 502 & 498 & 510 & 501 \\500 & 505 & 492 & 486 & 501 & 496 & 501 & 521 & 510 & 498\end{array}$$
-Referring to Scenario 2-19-B, construct a cumulative percentage distribution if the
corresponding frequency distribution uses "480 but less than 487" as the first class.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

Increases in cost per unit when output is expanded, often due to inefficiencies arising from becoming too large.

Certified Public Accountants

Professionals who have passed the CPA examination and met all other state certification requirements, authorized to provide accounting services to the public.

Diseconomies of Scale

A situation where, as a firm increases its production, the costs per unit increase.