A Candy Bar Company Is Interested in Reducing the Percent

question 126

Essay

A candy bar company is interested in reducing the percent defective candy bars made, where a defective candy bar has too few almonds by weight. The company randomly samples 100 candy bars a day for 5 days and finds the percent defective to be 0.0200, 0.0125, 0.0225, 0.0100, and 0.0150. The company wants to construct a control chart for the proportion defective in samples of size n = 100.
Estimate the process fraction defective p.
______________
Estimate the standard deviation of the sample proportions.
______________
What are the control limits?
UCL = ______________
LCL = ______________
How are these control limits used?
________________________________________________________

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Definitions:

Market Segment

A group of potential customers who share similar needs or characteristics that a company targets with its products or services.

Earn Less Profit

A scenario where a business or individual generates a lower amount of financial gain from operations or investments.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Earn More Profit

Refers to the increase in net revenue a company achieves through strategies such as cost reduction, price adjustment, or market expansion.