Professor Murphy Wants to Set Up a Control Chart to Monitor

question 4

Multiple Choice

Professor Murphy wants to set up a control chart to monitor the percentage of absenteeism in his introductory statistics course (50 students are registered) . Absences per period for the last 15 class sessions are in the table below. $$\begin{array} { | l | c | c | c | c | c | c | c | c | c | c | c | c | c | c | c | } \hline \text { Session } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 & 13 & 14 & 15 \\\hline \text { Absent } & 5 & 0 & 2 & 2 & 3 & 8 & 10 & 3 & 5 & 5 & 1 & 2 & 0 & 2 & 3 \\\hline\end{array}$$ Using 3 sigma limits, calculate lower and upper control limits for a p-chart to track absences.

• A)0, .252
• B)0, .175
• C)0, .114
• D)-0.038, .272

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Definitions:

Diminishing Marginal Utility

Principle that as more of a good is consumed, the consumption of additional amounts will yield smaller additions to utility.

Utility Of Income

The perceived value or satisfaction that an individual gains from receiving a certain amount of income.

Income Function

A mathematical representation that shows how an individual's or firm's income changes in relation to other factors, such as labor or capital investment.

Identical Expected Values

Situations where two or more uncertain alternatives have the same expected outcome or result.