In Gr’s Garage, the proportion of average number of customers who comes back again for the same fault is 0.10, during the warranty period of 30 days. Every month, 100 customers are tracked by Gr, in order to find out whether they are returning for same repair works during the warranty period and the same is plotted as proportion to report progress against goal. By setting the control limits on both sides of goal, at two standard deviations, the control limit for the chart needs to be determined. From the sample group 8 customers out of 100, has returned for repairs, for which the repair process is under control or not, needs to be assessed. Interpretation: The standard deviation gives information as to how various values are spread out when compared to the mean value.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 11P

Summary Introduction

Case Summary: In Gr’s Garage, the proportion of average number of customers who comes back again for the same fault is 0.10, during the warranty period of 30 days. Every month, 100 customers are tracked by Gr, in order to find out whether they are returning for same repair works during the warranty period and the same is plotted as proportion to report progress against goal. By setting the control limits on both sides of goal, at two standard deviations, the control limit for the chart needs to be determined. From the sample group 8 customers out of 100, has returned for repairs, for which the repair process is under control or not, needs to be assessed.

Interpretation: The standard deviation gives information as to how various values are spread out when compared to the mean value.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Sales of tablet computers at Marika Gonzalez's electronics store in Washington, D.C., over the past 10 weeks are shown in the table below: Week 1 2 3 4 5 6 7 8 9 10 Demand 21 21 27 38 25 30 35 24 25 30 a) The forecast for weeks 2 through 10 using exponential smoothing with a = 0.50 and a week 1 initial forecast of 21.0 are (round your responses to two decimal places): Week 1 2 3 4 5 6 7 8 9 10 Demand 21 21 27 38 25 30 35 24 25 30 Forecast 21.0 21 21 24 31 28 29 32 28 26.50 b) For the forecast developed using exponential smoothing (a = 0.50 and initial forecast 21.0), the MAD = |||||sales (round your response to two decimal places).

Sales of tablet computers at Marika Gonzalez's electronics store in Washington, D.C., over the past 10 weeks are shown in the table below: Week Demand 1 2 3 4 5 6 7 8 9 10 21 21 27 38 25 30 35 24 25 30 a) The forecast for weeks 2 through 10 using exponential smoothing with a = 0.50 and a week 1 initial forecast of 21.0 are (round your responses to two decimal places): Week 1 2 3 4 5 Demand 21 21 27 38 Forecast 21.0 ☐ G ☐ ☐ 6 7 25 30 35 ∞ ☐ 8 9 10 24 25 30

Each machine costs $3 Million. Building the room with all its attendant safety protection and other ancillary costs increases the spending by an additional $2.0 million dollars per MRI suite. Each machine can perform 2000 scans per year. Each reading of an MRI scan by a radiologist, along with other per-scan-related costs, is $500 per scan. The machine will last five years. Don’t worry about discount rates for this problem Graph the total costs over 5 years as a function of sales for 0-3000 patients annually. Hint: you may need to add a second MRI at some point. Suppose that you want to make a profit of $500 per scan at a target volume of 1000 patients per year, and you purchase only one machine. Superimpose the total revenue curve on top of the total cost curve in (1).