A Hotel Tracks the Number of Complaints Per Month

question 9

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. What is the upper control limit?

• A) less than or equal to 35
• B) more than 35 but less than or equal to 45
• C) more than 45 but less than or equal to 55
• D) more than 55

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Definitions:

Lump-Sum Tax

A tax that is the same amount for every person.

Deadweight Loss

A cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Ability-To-Pay Principle

A principle in taxation that holds that taxes should be levied according to an individual's or entity's capacity to pay.

Financial Burden

A financial burden is a substantial monetary load that may come in the form of debt, high costs, or other financial obligations that affect an individual's or entity's budget or financial well-being.