Historically,the Average Proportion of Defective Bars Has Been 0

question 217

Multiple Choice

Historically,the average proportion of defective bars has been 0.015.Samples will be of 100 bars each.Construct a p-chart using z = 3.Suppose a sample had 0.04 defective.What would you do?

• A) Nothing; it appears to be random variation.
• B) Look for assignable causes.
• C) Change z to 2 and take another sample.
• D) Change z to 4 and continue sampling.

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Definitions:

Credit

A mutual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date with terms specified.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership portion of a company's assets.

Asset

Resources owned or controlled by a company, expected to provide future economic value or benefits.

Owner's Capital

The amount of money and other assets owned by a business's owner after all liabilities have been deducted; also known as owner's equity.