Instruction 18-16 A Factory Supervisor Is Concerned That the Time It Takes

question 67

Short Answer

Instruction 18-16
A factory supervisor is concerned that the time it takes workers to complete an important production task (measured in seconds) is too erratic and adversely affects expected profits. The supervisor proceeds by randomly sampling five individuals per hour for a period of 10 hours. The sample mean and range for each hour are listed below.
She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds, respectively.
-Referring to Instruction 18-16,what is the value of the CPU index?

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Definitions:

Report Rates

The interest rates reported by financial institutions, often related to loans or deposits, to regulatory bodies or in their financial statements.

LIBOR

The London Interbank Offered Rate is a standard interest rate used by leading international banks for loans to each other.

Federal Funds Rate

The Federal Funds Rate is the interest rate at which depository institutions lend reserves maintained at the Federal Reserve to other depository institutions overnight.

Bankers' Acceptances

Short-term credit investments created by a non-financial firm and guaranteed by a bank.