Internal Reports on Quality at the Acme Publishing Company Generated

question 67

Multiple Choice

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year:
$\begin{array}{ll}\text{Total sales}&\$ 1,000,000\\\text{Costs of quality:}&\\\text { Prevention } & 50,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000\end{array}$
Compute the ratio of costs of nonconformance to total costs of quality.

• A) 39.4%
• B) 50.8%
• C) 60.5%
• D) 100%

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Definitions:

Levels

Distinct categories or values that independent or dependent variables can take in a study or experiment.

dfWG

Degrees of freedom within groups, a concept in statistical analysis that represents the number of independent pieces of information available to estimate a parameter or calculate a statistic within a subset or group.

Degrees of Freedom

The total amount of discrete variables or numbers that are able to fluctuate within a study without breaking any limitations.

Factor B

A variable or condition that is manipulated or varied in an experiment, considered distinct from other variables or conditions.