A Cell Phone Manufacturer Inspects the Video Display on Each

question 57

Multiple Choice

A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the manufacturer produces 0.1 percent defective displays. If they inspect 5000 phones each day for the next 10 days, what are the upper and lower control limits for their control chart if their sample mean mirrors their historical process average?

• A)0.0002, 0.0001
• B)0.0142, 0.0058
• C)0.1127, 0.0873
• D)0.0023, 0.0000

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Definitions:

Useful Life

The expected period of time during which an asset is useful to the average owner and can generate income or benefits.

Capital Fund

Resources accumulated by an entity to finance long-term projects or investment, not intended for regular operational expenses.

General Fund

The primary operating fund of a governmental entity, covering most basic governmental functions and activities.

Endowment Fund

A financial asset donation made to an institution that uses the resulting investment income for a specific purpose.