Construct an R Chart and Determine Whether the Process Variation

question 36

Essay

Construct an R chart and determine whether the process variation is within statistical control. A machine is supposed to fill cans that contain 12 ounces. Each hour, a sample of four cans is tested; the results of 15
consecutive hours are given below.

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Definitions:

Salvage Value

The projected remaining worth of an asset after its lifespan has ended.

Net Operating Income

The profit a company makes from its core operations, excluding expenses and revenues from non-operating activities.

Payback Period

The length of time required to recover the original investment in a project or asset, based on its expected cash flows.

Required Rate

The minimum return that investors expect or the company specifies for an investment, project, or loan.