A Hotel Tracks the Number of Complaints Per Month

question 180

Multiple Choice

A hotel tracks the number of complaints per month. When the process is in control, there is an average of 35 complaints per month. Assume that a 2-sigma control limit is used. The next four months have 33, 27, 29, and 43 complaints. What should management do?

• A) Look for assignable causes because the process is in control.
• B) Look for assignable causes because the process is out of control.
• C) Look for common causes because the process is out of control.
• D) Do nothing; the process is in control.

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, causing taxpayers to pay the same percentage of their income irrespective of its size.

Deductions

Expenses subtracted from gross income to determine the taxable income.

Excise Tax

A tax levied on certain goods, services, and activities, such as tobacco, alcohol, and fuel, usually to discourage their consumption and raise government revenue.

Local Property Tax

A tax assessed on real estate properties, usually levied by local government entities such as cities or counties.