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

question 96

Multiple Choice

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.
$\begin{array}{ll}\begin{array}{c}\text { Hour }\\\hline1\\2 \\3 \\4 \\5 \\6 \\7 \\8 \\9 \\10\end{array}\begin{array}{r}\overline{X}&R\\\hline{18.4} & 25 \\16.9 & 27 \\23.0 & 30 \\21.2 & 23 \\21.0 & 24 \\24.0 & 25 \\19.3 & 12 \\15.8 & 14 \\20.0 & 13 \\23.0 & 11\end{array}\end{array}$
-Referring to Instruction 18-10,suppose the supervisor constructs an 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:

Beta

In finance, beta is a measure of a stock's volatility in relation to the overall market; a higher beta indicates greater volatility and therefore higher risk and potential return.

Required Return

The minimum expected yield by investors to compensate for the risk of an investment.

Security Market Line

A representation in financial markets that depicts the relationship between the risk of an asset and its expected return.

Expected Inflation Rate

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.