You Want to Determine the Control Lines for a P-Chart

question 6

Multiple Choice

You want to determine the control lines for a p-chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 500, which of the following would be the standard deviation used in developing the control lines?

• A) 0.4900
• B) 0.2499
• C) 0.0707
• D) 0.000315
• E) 0.000975

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Definitions:

Planning Fallacy

The tendency for people and organizations to underestimate the time, costs, and risks of future actions and overestimate the benefits.

Bottlenecks

Points of congestion or blockage in a production process or system that lead to inefficiencies and delays.

Major Business Projects

Significant initiatives undertaken by businesses that involve considerable investment and are aimed at achieving specific strategic goals.

Prospect Theory

A theory in behavioral economics that evaluates how people choose between probabilistic alternatives that involve risk, where the probable outcomes are known.