A Quality Analyst Wants to Construct a Control Chart for Determining

question 79

Multiple Choice

A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results: $$\begin{array} { c c } \text { Machine } & \text { Total Defectives } \\\hline \# 1 & 23 \\\# 2 & 15 \\\# 3 & 29 \\\# 4 & 13\end{array}$$
What is the sample proportion of defectives for machine #1?

• A) .023
• B) .02
• C) .0115
• D) .0058
• E) .005

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Definitions:

Credit Policy

The guidelines a company follows to determine creditworthiness, terms of credit, and how to collect owed money, affecting its trade credit and financing approaches.

Accounts Receivable Approach

A method used to estimate the value of a firm's accounts receivable and gauge the potential for uncollectible invoices.

Net Present Value

A financial metric that calculates the present value of all cash flows associated with a project or investment, considering both inflows and outflows, to assess its profitability.

Monthly Interest Rate

The interest rate applied to a loan or debt on a monthly basis, often used for calculating monthly payments on a loan.