The Chair of the Operations Management Department at Quality University

question 49

Multiple Choice

The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are in control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results

What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?

• A).0075
• B).03
• C).075
• D).3
• E).75

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Definitions:

"Bird in the Hand" Theory

The investment theory suggesting that investors prefer the certainty of dividend payments over potential capital gains because of the perceived lower risk.

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.