The Fill Size for a Small Bag of Peanuts Distributed

question 12

Multiple Choice

The fill size for a small bag of peanuts distributed by a popular airline is 50 grams. The producer wishes to set up a set of control charts for this process and collects the data shown in the table. What are the upper and lower control limits of their X-bar chart? $\begin{array}{c|c|c|c|c|c}\text { Sample } & \text { Item \#1 } & \text { Item \#2 } & \text { Item \#3 } & \text { Item \#4 } & \text { Sum } \\\hline 1 & 54.5 & 54.3 & 53.8 & 50.4 & 213.0 \\\hline 2 & 50.6 & 53.5 & 53.2 & 54.9 & 212.2 \\\hline 3 & 51.1 & 54.3 & 50.4 & 50.7 & 206.5 \\\hline 4 & 52.7 & 52.1 & 51.3 & 51.0 & 207.1 \\\hline 5 & 51.7 & 51.2 & 54.7 & 54.3 & 211.9 \\\hline 6 & 51.1 & 51.5 & 54.7 & 50.4 & 207.7 \\\hline 7 & 54.0 & 52.3 & 54.7 & 51.4 & 212.4 \\\hline 8 & 53.2 & 50.4 & 53.4 & 51.4 & 208.4 \\\hline 9 & 51.9 & 50.2 & 50.2 & 52.9 & 205.2 \\\hline\end{array}$

• A)54.84, 49.85
• B)54.41, 50.32
• C)53.87, 50.78
• D)53.51, 51.18

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Definitions:

Infinitely Inelastic

Describes a situation where the demand for a good does not change regardless of changes in its price.

Economic Rents

Earnings in excess of the minimum amount required to keep a factor of production in its current use.

Aggregate

A total or combined amount, level, or sum of different components, often used in economics to describe collective economic indicators.

Equilibrium

A state in a market where supply equals demand, and there are no external forces prompting change.