A Random Sample of 49 Cast Aluminum Pots Is Taken

question 44

Multiple Choice

A random sample of 49 cast aluminum pots is taken from a production line once every day.The number of defective pots is counted.The proportion of defective pots has been closely examined in the past and is believed to be 0.05.The sample proportions for the week are shown in the accompanying table. Is the production process in control?

• A) No,because the sample proportions show a downward trend.
• B) No,because the sample proportions fall within the upper and lower control limits.
• C) Yes,because the sample proportions show a downward trend.
• D) Yes,because the sample proportions fall within the upper and lower control limits.

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Definitions:

After-tax Profit

The net income of a company after all taxes have been deducted from revenues.

Industry Life Cycle

A concept describing the stages of growth and development that a sector or industry goes through, from emergence to decline.

Stalwarts

Well-established companies known for their durability, stable earnings, and regular dividend payments.

Slow-growers

Companies or stocks that exhibit lower-than-average growth in terms of revenue or earnings, often offering stable dividends.