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Fifty Sample Measurements of the Length of an Automotive Component

question 64

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Fifty sample measurements of the length of an automotive component yield a grand mean of 1.33 inches with an estimated standard deviation of 0.2 inches.The specification length is between 1.2 and 1.4 inches.Is the process capable of meeting the required specifications?


Definitions:

Market Price

The price at which a good or service is bought and sold in a marketplace, determined by the forces of supply and demand.

Perfect Competitors

Firms operating in a market where there are many sellers and buyers, products are homogenous, and there is free entry and exit from the market.

Short Run

A period in economics during which at least one input (like factory size) is fixed and cannot be changed, contrasting with the long run where all inputs can be varied.

Industry

is the aggregate of manufacturing or technically productive enterprises in a particular field, characterized by the goods or services they produce.

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