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GrogVix [38]
3 years ago
7

Gladys Schwartz is the manager of a large loan brokerage firm. She strives for high quality output and is concerned with reducin

g errors in loan documents. Gladys took 20 samples of 80 loan documents each over a time period that she considered normal and found a total of 40 loan documents containing errors. a. Given the above information, set up a control chart (assuming three standard deviations). b. After developing the control chart in part a, three additional samples were collected. What observations can you make about each of these three samples
Business
1 answer:
Fudgin [204]3 years ago
6 0

<u>Solution and Explanation:</u>

P-chart to be used

Center line = total number of errors/(no of samples*sample size) = 40/(20*80) = 0.025 = p-bar

standard deviation = sqrt((p-bar*(1-p-bar))/sample size) =  = sqrt ((0.025*(1-0.025))/80) = 0.017

UCL = p-bar + z*standard deviation = 0.025 plus 3 multiply 0.0174553 = 0.0773659

LCL = p-bar - z*standard deviation = 0.025 minus 3 mulitply 0.0174553 = -0.0273659 = 0 (Adjusted)

Defect proportion of sample 1 = 5/80 = 0.0625

Defect proportion of sample 2 = 8/80 = 0.1

Defect proportion of sample 3 = 6/80 = 0.075

The process is not in control as Defect proportion of sample 2 is not within the control limits

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A company has budgeted fixed overhead of $1.00 per hour at expected capacity of 5,000 units which have a standard quantity of 2
Zepler [3.9K]

Answer:

$400 favorable

Explanation:

The computation of the volume variance is shown below:

Fixed overhead Volume Variance = Actual Overheads - Budgeted Overheads

where,

Actual overhead is

= 5,200 units × 2 hours × $1

= $10,400      

And, the budgeted overhead is

= 5,000 units × 2 hours × $1

= $10,000      

So, the volume variance is

= $10,400 - $10,000

= $400 favorable

We simply deduct the budgeted cost from the actual cost so that the difference could be come

5 0
3 years ago
A _______ is a share of ownership in a company.
Dvinal [7]

Answer:

Partnership

Explanation:

When you share ownership of a company, you are partnering with someone.

8 0
3 years ago
Read 2 more answers
ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Term
Sophie [7]

Answer:

The correct answer is "2,40,000". The further explanation is given below.

Explanation:

The given fair value is:

= $240,000

The presentation in books of lessee will be:

⇒  Record \ of \ assets =PV \ of \ Lease \ Payment +Unguaranteed \ residual \ value

⇒  Annuity \ value \ of \ 8 \ percent \5 \ year\times 48555+Anuity \ value \ of \ 5th \ year\times 45000

On putting the values, we get

⇒  3.9927\times 48555+0.6806\times 45000

⇒  193865.54+30627

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Presentation in books of Lessor , the fair value of assets will be

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8 0
4 years ago
An investment offers $6,260 per year for 17 years, with the first payment occurring 11 years from now. If the required return is
faust18 [17]

Answer: $61,328.15

Explanation:

The amount paid is per year so this is an annuity. It will begin 11 years from now so one should find the present value in that year:

Present Value of annuity = Annuity * ( 1 - ( 1 + rate) ^ - no. of periods) / rate

= 6,260 * ( 1 - ( 1 + 3%) ⁻¹⁷) / 3%

= $82,419.90

That is the present value if the annuity starts 11 years from now which means that it is the present value 10 years from now (ordinary annuities are paid end of period).

You need to discount to current period:

= 82,419.90 / ( 1 + 3%)¹⁰

= $61,328.15

7 0
3 years ago
Sally was recently given feedback from her boss that the content of her quarterly financial presentation is excellent; however,
scoray [572]

Answer:

The correct answer is C that is the accuracy of the data.

Explanation:

Execution means that the actual implementation or the execution of the details financials. As her boss gave feedback that the presentation was excellent which states that the level of the accuracy of the data is good.

Therefore, the aspect of the effectiveness of the communication which is not referred by the boss is accuracy of the data while talking about the execution.

7 0
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