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:

P-Value

A statistical measure that helps scientists determine the significance of their research results; a low p-value indicates strong evidence against the null hypothesis.

Binomial Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given number of observations.

Significance Level

A statistical term that quantifies the probability of rejecting the null hypothesis when it is actually true, typically expressed as a percentage or decimal.

Expected Frequency

The predicted count of occurrences for a particular category or event in a statistical distribution, based on a theoretical probability.