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

question 99

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 sample mean and range data were based on 6 observations per hour instead of 5. How would this change affect the lower and upper control limits of an R chart?

• A) LCL would increase; UCL would decrease.
• B) LCL would remain the same; UCL would decrease.
• C) Both LCL and UCL would remain the same.
• D) LCL would decrease; UCL would increase.

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Definitions:

Nominal Interest Rate

The interest rate as stated without adjustment for inflation, representing the actual percentage amount charged for borrowing money.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a given period of time.

Nominal Interest Rate

The percentage increase in money that borrowers pay to lenders, not adjusted for inflation.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to savers and investors.