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

question 5

Multiple Choice

You want to determine the upper control line for a p-chart for quality control purposes.You take several samples of a size of 100 items in your production process.From the samples, you determine the fraction defective is 0.05 and the standard deviation is 0.01.If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for the line?

• A)0.39
• B)0.08
• C)0.06
• D)0.05
• E)None of these

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Definitions:

Conversion Costs

Costs required to transform raw materials into finished products, combining direct labor and manufacturing overhead.

FIFO Method

"First in, first out," an inventory valuation method that assumes goods are sold in the order they were acquired or produced.

Beginning Work

Refers to the initial stages or processes of starting a project, task, or job in a business or manufacturing setting.

Conversion Costs

The combination of labor costs and overhead expenses associated with the conversion of raw materials into finished products.