The Chair of the Operations Management Department at Quality University

question 96

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: $$\begin{array} { l c } \text { Instructor } & \text { Number of Failures } \\\hline \text { Prof. A } & 13 \\\text { Prof. B } & 0 \\\text { Prof. C } & 11 \\\text { Prof. D } & 16\end{array}$$
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:

Abnormal Returns

Returns on a stock or portfolio that exceed the benchmark or expected return based on the risk assessment.

Rights Offering

A method by which a company offers new shares to its existing shareholders in proportion to their existing holdings, typically at a discount to the market price.

Subscription Price

The cost at which investors can purchase shares during a company's initial public offering (IPO) or when subscribing to a new issue of shares.

Bearish

A term used in trading to describe the expectation that a market, stock or price will decline.