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A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
Weight (ounces) 23 22 23 24 23 21 19 21 20 19 20 21 18 19 20 19 18 20 22 20 Day Monday Tuesday Wednesday Thursday Friday
If he uses upper and lower control limits of 22 and 18 ounces, what is his risk (alpha) of concluding this process is out of control when it is actually in control (Type I error)?
0.0026
0.0456
0.3174
0.6826
0.9544
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Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order is ?$40?, and the holding cost is 50?% of the purchase price of the tires per year. How many tires should Rocky Mountain order each time it places an? o..
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