TABLE 14-4 A Factory Supervisor Is Concerned That the Time It Takes

question 66

Multiple Choice

TABLE 14-4
A factory supervisor is concerned that the time it takes workers to complete an important production task (measured in seconds) is too erratic and adversely affects expected profits. The supervisor proceeds by randomly sampling 5 individuals per hour for a period of 10 hours. The sample mean and range for each hour are listed below.

She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds, respectively.
-Referring to Table 14-4, suppose the supervisor constructs an R chart to see if the variability in collection times is in control. What are the lower and upper control limits for this R chart?

• A) -2.33, 43.13
• B) -2.28, 42.28
• C) 0, 42.28
• D) 0, 43.13

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Present Value

The contemporary value of a forthcoming sum of money or cash flow series, adjusted for a specific rate of return.

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial analysis and investment decisions.