To Monitor the Number of Blemishes on a Polished Surface

question 153

Multiple Choice

To monitor the number of blemishes on a polished surface, a company randomly selects 10 units of output from its process and counts the number of blemishes on each unit. The sample results are shown below: Given the sample information above, the average number of defects per unit for this process would be

• A) 160.
• B) 80.
• C) 16.
• D) 10.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.

Output

Represents the total amount of goods and services produced by an economy over a specific period.

Average Variable Cost

The total variable costs (costs that change with the amount of output produced) divided by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of output or activity, such as rent or salaries.