Eight Samples of N = 50 Were Taken by an Operator

question 122

Essay

Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows.
Number
of
Sample Defects
1 10
2 0
3 12
4 8
5 10
6 16
7 14
8 10
(a)Management wants to develop a p-chart. What are the control limits?
(b)Is the process in a state of control?

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Definitions:

Deviation

The difference between a specific value and a reference point, often used in statistics to measure variability.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, for pricing risky securities.

Portfolio Risk

The degree of uncertainty of returns on a portfolio due to the possibility of changes in the value of its investments.

Well-diversified Portfolio

An investment portfolio constructed to spread risk across various asset classes and investment vehicles to minimize potential losses.