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alexandr402 [8]
4 years ago
9

You want to determine the upper control line for a p-chart for quality control purposes. You take several samples of a size of 1

00 items in your production process. From the samples, you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 95 percent, which of the following is the resulting UCL value for the line? The answer is not exact because of the rounding, please pick the closest number. Group of answer choices a. 0.19 b. 0.15 c. 0.03 d. 0.07 e. 0.39
Business
1 answer:
Harlamova29_29 [7]4 years ago
8 0

Answer:

The resulting UCL value for the line is 0.07. The right answer is d

Explanation:

According to the given data we have the following:

P-bar = Fraction defective = 0.05

Sp = Standard deviation = 0.01

In order to calculate the resulting UCL value for the line we have to use the following formula:

UCL = P-bar + (Z x Sp)

Using standard normal table, for 95% confidence level Z=1.96

Therefore, UCL = 0.05 +(1.96x0.01)=

                  UCL = 0.0696, Hence UCL=0.07

The resulting UCL value for the line is 0.07

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Answer:

Arithmetic = 3%

Geometric = 2.37%

Explanation:

The arithmetic average of 'n' returns is given by:

A = \frac{\sum r_i}{n}

For five returns of 5% ,21%, -12%, 7%, and -6%:

A=\frac{0.05+0.21-0.12+0.07-0.06}{5}\\ A=0.03=3\%

The geometric average of 'n' returns is given by:

G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1

For five returns of 5% ,21%, -12%, 7%, and -6%:

G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%

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