Management
Accounting:
Concepts, Techniques & Controversial Issues
Chapter 3 Part II - Problem Solutions
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Problem 3-9 1. d 2. a (c if 2 standard deviations are used to establish the limits. 3. a 4. b 5. a 6. c 7. c 8. a 9. a 10. b |
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Problem 3-10 1. The grand mean is 11.69. The mean of the ranges is .54. The values for the equation below are from Exhibit 3-9 and based on 6 items per sample.
The lower limit is 11.69 - (.483)(.54) = 11.429
2. The limits for the range are based on the following equations. The lower limit is (0)(.54) = 0 3. Yes the process appears to be in control since all ten means are within the limits, although some of the individual observations are outside the limits. |
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Problem 3-11 The original grand mean is 129.6/12 = 10.8 The new grand mean is 120/12 = 10 Note that every point in the new set of data is below the original mean. Unless the truck is being used for a different purpose (e.g., city driving vs. highway, heavy loads vs. light loads), it appears that it might be time for a tune up. Another possibility is that a different type of gas is being used. A different driver who drives less economically could also cause different results. |