Fifty Samples of Size 500 Were Drawn from a Manufacturing

question 145

Multiple Choice

Fifty samples of size 500 were drawn from a manufacturing process and the number of defectives in each sample was counted. The average of the sample proportion was 0.032. At which of the following values would the centreline for the p chart be located?

• A) 0.032
• B) 0.512
• C) 0.968
• D) 16.0

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Definitions:

Competitive Market

A market environment where numerous sellers and buyers exist, ensuring no single entity can dictate the price of a product or service.

Revenue

The aggregate revenue from goods sold or services provided that form the main activities of a business.

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit given their resources and market conditions.

Market Supply

The total amount of a specific good or service that is available for purchase in a given market at various prices, over a specified period.