The Chair of the Operations Management Department at Quality University

question 10

Multiple Choice

The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: $$\begin{array} { l c } \text { Instructor } & \text { Number of Failures } \\\hline \text { Prof. A } & 13 \\\text { Prof. B } & 0 \\\text { Prof. C } & 11 \\\text { Prof. D } & 16\end{array}$$ What is the estimate of the mean proportion of failures for these instructors?

• A) .10
• B) .11
• C) .13
• D) .16
• E) .40

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Definitions:

Purchasing Priority

The practice of prioritizing procurement activities based on factors such as urgency, price, or importance to the business.

Holding Costs

Expenses related to keeping inventory on hand.

Stocking Costs

Expenses related to holding or storing inventory, including warehousing, handling, insurance, and spoilage costs.

Ordering Costs

Expenses related to procuring inventory.