A Manufacturing Process Produces Computer Chips in Batches of 100

question 34

Multiple Choice

A manufacturing process produces computer chips in batches of 100.The firm believes that the percent of defective computer chips is 2%.If in five batches the percent defective were 3%,8%,1%,2%,and 7%,how many of these fell outside of the upper or lower control limits for the proportion of defective computer chips in a batch?

• A)0
• B)1
• C)2
• D)3

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Definitions:

Industry

A sector of the economy characterized by a specific type of activity or product, such as manufacturing, technology, or services.

Firms

Business organizations that produce goods or provide services with the aim of making a profit.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural, human, and capital resources.

Market System

A market-based economic system where decisions about investment, production, and the allocation of goods are driven by the dynamics of supply and demand, with goods and services' prices being freely determined.