Questions from Business Statistics

Q: The Mitchell Chemical Company produces a special industrial chemical that is a

The Mitchell Chemical Company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend pro...

Q: Compute the price relatives for the R&B Beverages products in

Compute the price relatives for the R&B Beverages products in exercise 5. Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate metho...

Q: An investment portfolio consists of four stocks. The purchase price,

An investment portfolio consists of four stocks. The purchase price, current price, and number of shares are reported in the following table. Construct a weighted average of price relatives as an in...

Q: A process that is in control has a mean of µ =

A process that is in control has a mean of µ = 12.5 and a standard deviation of σ = .8. a. Construct the x̅ control chart for this process if samples of size 4 are to be used. b. Repeat part (a) for s...

Q: For an acceptance sampling plan with η = 25 and c =

For an acceptance sampling plan with η = 25 and c = 0, find the probability of accepting a lot that has a defect rate of 2%. What is the probability of accepting the lot if the defect rate is 6%?

Q: Consider an acceptance sampling plan with η = 20 and c =

Consider an acceptance sampling plan with η = 20 and c = 0. Compute the producer’s risk for each of the following cases. a. The lot has a defect rate of 2%. b. The lot has a defect rate of 6%.

Q: A special industrial battery must have a life of at least 400

A special industrial battery must have a life of at least 400 hours. A hypothesis test is to be conducted with a .02 level of significance. If the batteries from a particular production run have an ac...

Q: Repeat exercise 11 for the acceptance sampling plan with η = 20

Repeat exercise 11 for the acceptance sampling plan with η = 20 and c = 1. What happens to the producer’s risk as the acceptance number c is increased? Explain Exercise 11: Consider an acceptance sam...

Q: Refer to the KALI problem presented in this section. The quality

Refer to the KALI problem presented in this section. The quality control manager requested a producer’s risk of .10 when p0 was .03 and a consumer’s risk of .20 when p1 was .15. Consider the acceptanc...

Q: To inspect incoming shipments of raw materials, a manufacturer is considering

To inspect incoming shipments of raw materials, a manufacturer is considering samples of sizes 10, 15, and 19. Use the binomial probabilities from Table 5 of Appendix B to select a sampling plan that...