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:

Selling Price

The amount charged to the customer for a product or service, determining the revenue generated from sales.

Net Operating Income

A company's revenue minus operating expenses, not including taxes and interest.

Sales Volume

The quantity of units sold within a specified period, crucial for analyzing a company's performance and planning production.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in creating a product.