A Quality Analyst Wants to Construct a Sample Mean Chart

question 12

Essay

A quality analyst wants to construct a sample mean chart for controlling a packaging process.He knows from past experience that when the process is operating as intended,packaging weight is normally distributed with a mean of twenty ounces,and a process standard deviation of two ounces.Each day last week,he randomly selected four packages and weighed each.The data from that activity appears below. (a)If he sets an upper control limit of 21 and a lower control limit of 19 around the target value of twenty ounces,what is the probability of concluding that this process is out of control when it is actually in control?
(b)With the UCL and LCL of part a,what do you conclude about this process-is it in control?

---

Definitions:

Market Rate

The prevailing interest rate available in the marketplace on a given financial product or the current price of a commodity or service.

Open Market Operations

Central bank activities involving the buying and selling of government securities in the open market to control the money supply and influence interest rates.

Monetary Policy

Actions undertaken by a central bank, such as setting interest rates or buying securities, to influence the money supply and achieve economic goals.

Discount Rate

The rate at which the Federal Reserve lends money to financial institutions through its discount window.