Use the Given Process Data to Construct a Control Chart

question 66

Multiple Choice

Use the given process data to construct a control chart for p. A candy manufacturer considers a cracked piece of candy to be a defect. Each day 100 candies are randomly selected and checked for cracks. The numbers of defects for 20
Consecutive days are given below. $$\begin{array} { l l l l l l l l l l l l l l l l l l l l } 14 & 4 & 5 & 5 & 5 & 5 & 5 & 6 & 6 & 6 & 6 & 12 & 6 & 6 & 6 & 7 & 6 & 7 & 8 & 7\end{array}$$ What is the value of the center line?

• A) 10
• B) 1.32
• C) 6.6
• D) 0.066

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, highlighting the impact of fixed versus variable costs.

Profits

The financial gain achieved when the revenue generated from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, acting as a broad indicator of economic activity.

Sales Opportunity

A potential revenue-generating event, or lead, that has been identified as having a significant probability of becoming an actual sale.