TABLE 17-4 A Factory Supervisor Is Concerned That the Time It Takes

question 108

Multiple Choice

TABLE 17-4
A factory supervisor is concerned that the time it takes workers to complete an important production task (measured in seconds) is too erratic and adversely affects expected profits. The supervisor proceeds by randomly sampling 5 individuals per hour for a period of 10 hours. The sample mean and range for each hour are listed below.

She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds, respectively.
-Referring to Table 17-4, suppose the supervisor constructs an R chart to see if the variability in collection times is in-control. What is the center line of this R chart?

• A) 20.00
• B) 20.56
• C) 20.40
• D) 24.00

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Crossover Rate

The crossover rate refers to the point at which two different projects have the same net present value (NPV), used in capital budgeting to compare the desirability of investments or projects.

Mutually Exclusive

Situations, events, or decisions that cannot occur or be undertaken simultaneously—if one happens, the other cannot.

Projects

Initiatives or plans undertaken to achieve specific objectives, which can be either short-term or long-term in nature.