Instruction 18-7
a Factory Supervisor Is Concerned That the Time

question 32

Multiple Choice

Instruction 18-7
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.
$$\begin{array} { | l | l | l | } \hline \text { Hour } & \underline { \underline { X } } & \underline { R } \\\hline 1 & 18.4 & 25 \\\hline 2 & 16.9 & 27 \\\hline 3 & 23.0 & 30 \\\hline 4 & 21.2 & 23 \\\hline 5 & 21.0 & 24 \\\hline 6 & 24.0 & 25 \\\hline 7 & 19.3 & 12 \\\hline 8 & 15.8 & 14 \\\hline 9 & 20.0 & 13 \\\hline 10 & 23.0 & 11 \\\hline\end{array}$$
-Referring to Instruction 18-7,suppose the supervisor constructs an R chart to see if the process is in control.What are the lower and upper control limits of this chart?

• A) 10.00, 30.00
• B) 8.49, 32.03
• C) 4.96, 35.56
• D) 5.39, 35.13

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Definitions:

Residual Dividend Theory

A policy whereby a company pays dividends to shareholders from leftover earnings after all operational costs and capital investment projects are covered.

Operating Income (EBIT)

Refers to an entity's earnings before interest and taxes, calculated by subtracting operating expenses from gross income, indicating the profitability from regular operations.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.