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.

Discuss the effect of diversity and culture on decision making.

Explain the phenomenon of group polarization and its implications.

Understand the different types of power within an organizational context.

Identify the key agents and targets in the dynamics of power use.

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Definitions:

MR Curve

The Marginal Revenue curve represents the change in total revenue that results from selling one additional unit of a good or service.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a certain action.

MR

Marginal Revenue, the increase in revenue that results from selling one additional unit of a product.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of production.