A Quality Manager in a Small Manufacturing Company Wants to Estimate

question 89

Multiple Choice

A quality manager in a small manufacturing company wants to estimate the proportion of items produced by a very specialized process that fail to meet a customer's specification.Because it is very expensive to determine if an item produced by the process meets the specification,only a very small number of items can be tested.A random sample of 15 items was selected,and in the sample three of them failed.What is the standard error of the plus four estimate of the true proportion p?

• A)0.010
• B)0.103
• C)0.101
• D)0.116
• E)0.013

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Definitions:

Accounts Receivable

Funds that customers owe a company for goods or services already provided but not yet compensated for.

Allowance Method

An accounting technique used to estimate and account for a firm's potentially uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.

Uncollectible Receivables

Accounts receivable that a company does not expect to collect and writes off as a bad debt expense.