A New Machine Used in the Production of Motor Mount

question 110

Multiple Choice

A new machine used in the production of motor mount bolts was put into operation. Five samples of size 100 were randomly selected and the number of defectives in each sample was noted. What is the lower control limit (LCL) ?

• A) 0%
• B) -2.2%
• C) 4.8%
• D) 1.6%

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Definitions:

Credit Sales

Sales transactions where the payment is deferred to a future date, typically allowing the buyer to purchase goods or services on credit.

Vice-president

An officer in a company or institution below the president in rank, who can act in place of the president under certain conditions.

Segregation of Duties

An internal control mechanism designed to reduce the risk of error or fraud by dividing responsibilities among different people in an organization.

Cheque Signer

An authorized individual within an organization who has been given the authority to sign checks on behalf of the company.