An Important Characteristic in the Proper Operation of Ignition Keys

question 82

Multiple Choice

An important characteristic in the proper operation of ignition keys for automobiles is the groove width of the key.In a large manufacturing plant that produces thousands of keys,control charts have been established to monitor the process of cutting the groove.It is believed that the measurement (in inches) of the groove width is Normally distributed.Over a period of time,20 samples,each of size n = 5,were selected in order to establish 3-sigma and s charts.From these samples the following were determined: = 0.15932 and
= 0.0193438.For the chart that is being set up,what are the appropriate 3-sigma lower and upper control limits, (LCL,UCL) ?

• A)(0.00667,0.00927)
• B)(-0.02289,0.03883)
• C)(0.13337,0.18527)
• D)(0.00659,0.00935)
• E)None of the above

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Definitions:

Economies of Scale

Cost advantages reaped by companies as a result of scale of operation, leading to a reduction in the per-unit cost of production.

Long-Run Average Cost Curve

A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

ATC

The abbreviation for Average Total Cost, which is the total cost divided by the number of goods produced.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.