For Which of the Following Should We Use an R-Chart

question 47

Multiple Choice

For which of the following should we use an R-chart to monitor process quality?

• A) Weighing trucks at a highway inspection station to determine if they are overloaded
• B) Deciding whether an airliner has sufficient fuel for its trip
• C) Student grades measured from 1 to 100
• D) Determining whether vehicles from a motor pool will run
• E) Determining the accuracy of a forecast of "snow"

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Definitions:

Marginal Product

The additional output that results from using one more unit of a particular input, holding other inputs constant.

Average Product

The average output produced per unit of a factor of production over a specific period, often calculated for labor or capital.

Input

The resources used in the production process, such as labor, materials, and machinery.

Explicit Costs

These are direct payments made to others in the course of running a business, such as wages, rent, and materials.