Bradford Inc -What Are Bradford's Total External Failure Costs?
A) $ 40

question 30

Multiple Choice

Bradford Inc.
Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
$$\begin{array} { l r } \text { Product quality audits } & \$ 60000 \\\text { Quality training } & 50000 \\\text { Rework costs } & 80000 \\\text { Warranty claims } & 40000 \\\text { Inspection of incoming materials } & 25000 \\\text { Scrap costs } & 20000 \\\text { Statistical process control } & 35000\end{array}$$
-What are Bradford's total external failure costs?

• A) $ 40 000
• B) $ 60 000
• C) $140 000
• D) $100 000

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Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations.

Distribution

Distribution in statistics refers to the way in which values of a variable or observations are spread out or scattered across a range, showing the frequency of each value.

Sum

The result of adding two or more numbers or quantities together to get a total.

Relative Frequency Distribution

A statistical measure that shows the frequency of different outcomes in a dataset relative to the total number of outcomes.