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

question 1

Multiple Choice

The center line (p-bar) for a p-chart is 0.50 with an UCL = 0.70 and a LCL = 0.35.The results of the next eight sample means are 0.45, 0.60, 0.39, 0.44, 0.48, 0.53, 0.54, and 0.61.What would you do?

• A)Nothing; the process is in control.
• B)increase the sample size to get a better measure.
• 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:

Intra-entity Transfer

Transactions that occur between divisions or units within the same company, often involving the transfer of goods or services.

Depreciable Asset

An asset that loses value over time or with use and for which depreciation can be accounted to spread the cost over its useful life.

Transfer Price

The price at which goods and services are sold between divisions within the same company or between subsidiaries of the same parent company.

Intra-entity Transfer

Transactions involving the exchange of goods, services, or resources between divisions within the same entity.