Each Evening, a Nationwide Retail Chain Randomly Calls 100 of the Customers

question 17

Multiple Choice

Each evening, a nationwide retail chain randomly calls 100 of the customers who came to their store that day to ask whether they were satisfied with the service they had received. The customers respond yes or no. Suppose the company has found over time that 8 percent of the customers are not satisfied ("no" answers) , what is the 3-sigma upper and lower control limits for the appropriate control chart?

• A) About .053 and .107
• B) 0 to about .16
• C) -.0.14 to about .16
• D) About -1.96 to 1.96

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Definitions:

Marginal Costs

The rise in the overall expense incurred from the production of an extra unit of a good or service.

Potential Customers

Individuals or organizations that could become purchasers of a product or service, but have not yet done so.

Expected Profit

The forecasted amount of profit based on potential outcomes and their probabilities.

Price

The financial sum anticipated, needed, or handed over as payment for an item.