A Manufacturer of a Particular Grade of Copper Tubing Collects

question 5

Essay

A manufacturer of a particular grade of copper tubing collects data on the number of flaws occurring in 500 metre coils. Suppose they sample a total of 40 coils to initiate control charting. The average number of defects per coil is 2.5.
a. What type of control chart should be used for these data?
b. If the average number of defects per coil is 2.5, calculate the centreline and control limits for the appropriate control chart.

---

Definitions:

Income

Earnings received by an individual or entity, usually in the form of wages, salaries, or investments.

Interest Rate

The percentage of a loan charged to the borrower as interest, usually shown as an annual rate of the outstanding loan amount.

Utility Function

A mathematical representation in economics of a consumer's preference ordering over a set of goods and services.

Consumption

The process by which goods and services are used up or consumed by individuals or groups.