A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results
What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?
Definitions:
Net Cash Flow Impact
The effect on the total cash inflows and outflows for a business, considering all sources of revenue and expenses over a specific period.
Additional Working Capital
Extra funds a company needs to support its normal business operations and accommodate growth.
Full Recovery
The process of recouping all costs incurred during production, often through sales revenue.
Net Present Value
A financial metric showing the value of all future cash flows related to an investment discounted back to the present time.
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