If There Are 400 Total Defects from 8 Samples, Each

question 15

Multiple Choice

If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be used in a p-chart for quality control purposes?

• A)400
• B)160
• C)2.5
• D)1.0
• E)0.4

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Willing to Pay

The maximum price at which a consumer values a good or service enough to purchase it.

Producer Surplus

The difference between the amount producers are willing to receive for a good or service and the amount they actually receive, due to higher market prices.