A Small, Independent Amusement Park Collects Data on the Number

question 18

Essay

A small, independent amusement park collects data on the number of cars with out-of-state license plates. The sample size is fixed at n=25 each day. Data from the previous 10 days indicate the following number of out-of-state license plates:
$$\begin{array} { | c | c | } \hline \text { Day } & \begin{array} { c } \text { Out-of-state } \\\text { Plates }\end{array} \\\hline 1 & 6 \\\hline 2 & 4 \\\hline 3 & 5 \\\hline 4 & 7 \\\hline 5 & 8 \\\hline 6 & 3 \\\hline 7 & 4 \\\hline 8 & 5 \\\hline 9 & 3 \\\hline 10 & 11 \\\hline\end{array}$$
(a) Calculate the overall proportion of "tourists" (cars with out-of-state plates) and the standard deviation of proportions.
(b) Using ± 3σ limits, calculate the LCL and UCL for these data.
(c) Is the process under control?
Explain.

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Definitions:

Expense Recognition

A principle in accounting that dictates when costs are recognized as expenses in the financial statements, often aligned with the revenue they helped to generate.

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, not when the obligation is incurred.

Comparability

An accounting principle that ensures financial statements can be compared between periods and across companies.

Financial Statements

Consolidated reports that summarize the financial performance, position, and cash flows of a business over a specified period.