Five Samples of Size 4 Were Taken from a Process $\bar{x}$

question 50

Multiple Choice

Five samples of size 4 were taken from a process. A range chart was developed that had LCLR = 0 and UCLR = 2.50. Similarly, an average chart was developed with the average range from the five samples, with LCL $\bar{x}$ = 15.0 and LCL $\bar{x}$ = 24.0. The ranges for each of the five samples were 1.75, 2.42, 2.75, 2.04, and 2.80, respectively. The values of the sample average for each sample were 19.5, 22.3, 17.4, 20.1, and 18.9, respectively. What can you tell management from this analysis?

• A) The process variability is out of control, and we cannot make a statement about the process average.
• B) The process variability is out of control, but the process average is in control.
• C) The process variability and the process average are out of control.
• D) We cannot tell if the process variability or the process average is out of control.

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Definitions:

Simple Interest Rate

An interest rate calculation method that is based solely on the original principal amount and does not factor in compounded interest.

Loan

A sum of money that is borrowed, often from a financial institution, which is expected to be paid back with interest.

Interest

The payment required for obtaining the service of borrowing funds, typically denoted as a yearly percentage rate.

Interest Rate

The proportion of interest charged to a borrower by a lender for the use of borrowed money.