Four Samples of 100 Each Were Taken from an Assembly

question 11

Multiple Choice

Four samples of 100 each were taken from an assembly line,with the following results: Using the historical average as the central line of the chart,which one of the following is the limits for an attributes control chart with z = 2?

• A)UCL > 0.1 and LCL > 0.03
• B)UCL > 0.1 and LCL < 0.03
• C)UCL < 0.1 and LCL > 0.03
• D)UCL < 0.1 and LCL < 0.03

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Definitions:

Mutually Exclusive

Situations or events that cannot occur at the same time; choosing one option excludes the choice of another.

Cash Flows

The total sum of money transfers both incoming and outgoing in a firm, majorly affecting its financial readiness.

Profitability Index (PI)

The present value of an investment’s future cash flows divided by its initial cost; also benefit/cost ratio.

Straight-Line Depreciation

A framework for spreading out the cost of a physical asset across its useful lifespan in identical yearly contributions.