Each Evening, a Nationwide Retail Chain Randomly Calls 100 of the Customers

question 20

Multiple Choice

Each evening, a nationwide retail chain randomly calls 100 of the customers who came to their store that day to ask whether they were satisfied with the service they had received. The customers respond yes or no. Suppose the company has found over time that 8 percent of the customers are not satisfied ("no" answers) . If they have established a process control chart, what conclusion should be reached if the percentage of customers surveyed tonight that say no is 14 percent?

• A) This result indicates that a special cause situation exists.
• B) Although this point is above the upper control limit, there is no cause for alarm if this is the first time.
• C) While this value is higher than "normal," it is still within the range of common cause variation and no action is needed.
• D) This is outside the control limits and action should be taken

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Definitions:

On Sale

A promotional activity where items are offered to consumers at reduced prices for a limited period.

Electric Cars

Vehicles powered by electric motors rather than traditional internal combustion engines.

Consumer Tastes

Refers to the preferences or dislikes that individuals have regarding different goods and services.

Demand Increase

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price level rises.