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Instruction 18-10
a Factory Supervisor Is Concerned That the Time

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Instruction 18-10
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.
 Hour 12345678910XR18.42516.92723.03021.22321.02424.02519.31215.81420.01323.011\begin{array}{ll}\begin{array}{c}\text { Hour }\\\hline1\\2 \\3 \\4 \\5 \\6 \\7 \\8 \\9 \\10\end{array}\begin{array}{r}\overline{X}&R\\\hline{18.4} & 25 \\16.9 & 27 \\23.0 & 30 \\21.2 & 23 \\21.0 & 24 \\24.0 & 25 \\19.3 & 12 \\15.8 & 14 \\20.0 & 13 \\23.0 & 11\end{array}\end{array}
-Referring to Instruction 18-10,suppose the supervisor constructs an R chart to see if the variability in collection times is in control.What are the lower and upper control limits for this R chart?


Definitions:

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Cash Collections

The process of gathering all payments or receivables a company has earned from its sales or services.

Budgeted Sales

A financial estimation of the future sales revenue of a company over a specific period, forming part of the broader company budget.

Budgeted Sales Data

Projections or estimates of sales for a future period, used for planning and forecasting purposes.

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