The Center Line (P-Bar) for a P-Chart Is 0

question 40

Multiple Choice

The center line (p-bar) for a p-chart is 0.50 with an ULC = 0.65 and a LCL = 0.35. The results of the next eight sample means are 0.45, 0.60, 0.39, 0.44, 0.48, 0.58, 0.54, and 0.64. Which of the following is the best action to take?

• A) Collect eight additional samples and then decide.
• B) Wait and collect more data by increasing the sample size.
• C) Investigate assignable causes because four observations are above the center line.
• D) Investigate assignable causes because there is a bad trend (run).

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Definitions:

Secret Price Concessions

Unadvertised discounts or reductions in price offered to buyers, often as part of negotiation processes in sales transactions.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of oil-exporting countries aimed at coordinating and unifying petroleum policies to secure fair and stable prices for petroleum producers.

International Cartel

An agreement among companies from different countries aimed at controlling production, fixing prices, or limiting competition in the international market.

Collusion

An agreement, usually secretive, between firms to fix prices, limit supply, or divide markets to reduce competition and increase profits.