A Manufacturing Process Produces Computer Chips in Batches of 100

question 58

Multiple Choice

A manufacturing process produces computer chips in batches of 100. The firm believes that the percent of defective computer chips is 2%. If in five batches the percent of chips defective were 3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control limits for the proportion of defective computer chips in a batch?

• A) 0
• B) 1
• C) 2
• D) 3

---

Definitions:

Age Misrepresentation

The intentional act of presenting one's age as different from their true age, often in a legal context.

Life Insurance

A contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Insurance Application

A formal request or proposal to an insurance company for coverage, detailing personal or organizational information relevant for underwriting.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.