OPERATION MANAGEMENT
OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 9, Problem 13CQ
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To determine: The statement that is correct about pareto digrams.

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Which of the following statements about Pareto diagrams is correct?a. The Pareto diagram shows the possible root causes of a problem but does not show thefrequency of defect occurrences.b. The Pareto diagram shows the defects in order from most commonly occurring to leastcommonly occurring.c. The Pareto diagram shows the mean of a random sample at various points in time.d. The bars in the Pareto diagram have, on average, roughly the same height.
Which of the following statements about Pareto diagrams is correct?a. The Pareto diagram shows the possible root causes of a problem along with the numberof defect occurrences.b. The Pareto diagram shows the process capability index over time.c. The Pareto diagram shows the mean of a random sample at various points in time.d. The Pareto diagram shows a visual representation of binary outcome variables.
You work for Raider Data Systems where thousands of insurance records are entered by clerks each day for a variety of client firms.  You are in charge of setting control limits to include 99.73% of the random variation in the data entry process when it is in control. Samples that you collected from 20 employees are shown below.  You carefully examine 100 records entered by each employee and count the number of errors entered by each clerk. You also compute the proportion defective in each sample. Using a p-chart, what are the upper and lower control limits?   Sample Errors Made Proportion Defective 1 4 0.04 2 5 0.05 3 6 0.06 4 3 0.03 5 8 0.08
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