A Pizza Delivery Service Wants to Track Their Delivery Times

question 32

Multiple Choice

A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their R-chart? $$\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline \text { Sample \# } & \mathbf { 1 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } & \mathbf { 6 } & \mathbf { 7 } & \mathbf { 8 } \\\hline \text { Item \#1 } & 21.1 & 20.2 & 24.1 & 22.6 & 21.2 & 20.9 & 22.4 & 20.9 \\\hline \text { Item \#2 } & 21.7 & 20.6 & 21.7 & 21.7 & 24.1 & 23.5 & 24.6 & 24.7 \\\hline \text { Item \#3 } & 23.0 & 24.5 & 23.2 & 23.0 & 20.6 & 22.8 & 23.4 & 22.8 \\\hline \text { Item \#4 } & 20.3 & 23.5 & 24.4 & 25.0 & 20.7 & 23.2 & 23.3 & 24.5 \\\hline\end{array}$$

• A)24.9, 20.3
• B)7.2, 0.0
• C)3.1, 0.0
• D)22.6, 0.0

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Definitions:

Consolidated Balance Sheet

A balance sheet that presents the assets, liabilities, and equity of a parent company and its subsidiaries as one entity, after eliminating inter-company transactions.

Deferred Income Tax Asset

A Deferred Income Tax Asset is an accounting term for items that reduce future tax payments due to temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities.

Consolidated Income Tax

Income tax accounting that includes all income, exemptions, and credits of a consolidated group of companies.

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the near future.