Question

In: Finance

Five samples of size 4 were taken from a process. A range chart was developed that...

Five samples of size 4 were taken from a process. A range chart was developed that had LCLr = 0 and UCLr = 2.50. Similarly, an average chart was developed with the average range from the five samples, with LCLx = 15.0 and UCLX = 24.0. The ranges for each of the five samples were 1.75, 2.42, 2.75, 2.04, and 2.80, respectively. The values of the sample average for each sample were 19.5, 22.3, 17.4, 20.1, and 18.9, respectively. What can you tell management from this analysis?

The process variability and the process average are out of control.

We cannot tell if the process variability or the process average is out of control.

The process variability is out of control, but the process average is in control.

The process variability is out of control, and we cannot make a statement about the process average.

Solutions

Expert Solution

The question is based on the concept of production control chart , The control chart explains the graphical movement of production level over time. The production data are plotted as line graph in time order, with a central line for the average, an upper control line and lower control line used to find consistency in production system.

Here , the given ULC and LCL for sample and aaverage explain the variablity is out of control.

Correct Answer D:The process variability is out of control, and we cannot make a statement about the process average.


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