You Want to Determine the Lower Control Line for a P-Chart

question 31

Multiple Choice

You want to determine the lower control line for a p-chart for quality control purposes.You take several samples of a size of 50 items in your production process.From the samples, you determine the fraction defective is 0.006 and the standard deviation is 0.001.If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line?

• A)0.0
• B)0.002
• C)0.003
• D)0.004
• E)None of these

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Definitions:

Prepaid Expenses

Expenses paid for in advance and recorded as assets before they are used or consumed.

Accrued Expenses

Costs that a company has incurred but hasn't paid for yet, which show up as liabilities on the balance sheet.

Unadjusted Trial Balance

A list showing the balances of all ledger accounts before any adjustments are made, used as the first step in preparing financial statements.

Financial Statements

Documents that provide an overview of a company's financial condition in both short-term and long-term contexts, including the balance sheet, income statement, and cash flow statement.