A Quality Analyst Wants to Construct a Control Chart for Determining

question 109

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 estimate of the process proportion of defectives?

• A) .08
• B) .06
• C) .04
• D) .02
• E) .01

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Definitions:

Ending Inventory

The final amount of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting the goods sold.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serves as a global framework for financial reporting.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting in the U.S.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the estimated costs of completion and the necessary costs to make the sale.