A New Machine That Fills Tubes of Toothpaste Will Be

question 135

Multiple Choice

A new machine that fills tubes of toothpaste will be monitored using statistical process control. The following data were collected while the machine was closely monitored and under control. Each day a random sample of six tubes are weighed. Based on the data, the process mean is 6.752. What is the lower control limit for the x-bar chart rounded to three decimal places?

• A) 6.816
• B) 6.676
• C) 6.688
• D) 6.828

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Definitions:

Patents

Exclusive rights granted to an inventor to manufacture, use, or sell an invention for a certain number of years.

Impairment Loss

A reduction in the recoverable value of a fixed asset or goodwill below its book value, leading to a write-down and charge against earnings.

Cost Method

An accounting method where investments are recorded at their acquisition cost without subsequent change except for impairment.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.