What is the dpu of the production line

Assignment Help Finance Basics
Reference no: EM133068308

A production line manufactures basic electronic parts. If an electronic part does not work, it will be considered as one defect and scrapped. A simple random sample of 18,000 parts is tested to assess the production line. Forty five defects were found. In answering the following questions, you would need to use the specified number of decimal places. In addition, to calculate the sigma level, you can use Excel by typing in =Norm.S.INV(1-DPU)+1.5 where DPU is the value you get earlier. And, to calculate the number of expected defects, you need to rely on the lookup table below.

(a) What is the DPU of the production line? (use 7 decimal places if applicable)

(b) What is the corresponding DPMO? (use 1 decimal place if applicable)

(c) What is the sigma level? (use 2 decimal places)

(d) For a sigma level of 5.0, what would be the number of defects? (Use 2 decimal places)

Sigma Level

2.0

3.0

4.0

5.0

6.0

DPMO

308,537.5

66,807.2

6,209.7

232.6

3.4

Reference no: EM133068308

Questions Cloud

Average rate of inflation : An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cro
What is the balance on margin account : Over the subsequent days, the futures price has evolved as shown in the following table. All values are the closing futures price for that day.
Prepare journal entries necessary to account for fair value : Prepare the journal entries necessary to account for the fair value changes on Farzad's financial assets at December 31, 2020
Client the nature of a benchmark portfolio : Your client asks you the following questions about how your performance will be measured. You decide a benchmarked portfolio should be introduced to the client.
What is the dpu of the production line : A production line manufactures basic electronic parts. If an electronic part does not work, it will be considered as one defect and scrapped. A simple random sa
Securities law and antitrust law : Private nonprofit educational institution located in Califor­nia, decides to issue "Shares in Learning" certificates in a one-time offering to the public
How much dollar savings in interest did treadwater achieve : Magna received net proceeds of ?$977,205. How much dollar savings in interest did Treadwater achieve by accessing the commercial paper? market
What is the effective annual rate : You thought that the London property market is severely undervalued due to the recent collapse of the financial market and you believe the property market will
Calculate depreciation expense : Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify the key stakeholders in the budgeting process

Identify the key stakeholders in the budgeting process at the organization and explain how they are involved in the processes. Explain how knowledge of forecasting, strategic planning, and budgeting processes might impact your decisions in the orga..

  Estimate the long-term return on the stock

You are considering the purchase of a stock with a Beta of 0.75. The current yield on T-Bonds is 1.55%, and you expect the long-term excess returns.

  Solve for the optimal allocation of wealth to asset

The investor is an expected utility maximizer with a log utility function. Solve for the optimal allocation of wealth to each asset.

  Discuss issue from the perspective of the payer and recipien

1. You are the tax consultant for a spouse in a divorce proceeding. Please discuss and compare alimony versus child support from a tax perspective. Please discuss this issue from the perspective of the payer and from the recipient. A tax client has t..

  After-tax real percent interest rate

State the after-tax real percent interest rate (in percent to 2 decimal places e.g. 4.47% or 25.61%) for this investment.

  Construct a replicating portfolio

A European put option written on stock has strike price $12 and expires at time t = 1. At the current time t = 0 the underlying stock has price

  Shareholder wealth and the profitability

Discuss how shareholder wealth and the profitability of Financial Institutions are protected from losses due to credit/default risk.

  Stock of the mccall corporation

The stock of the McCall Corporation is currently trading at $42 per share. The stock's volatility as measured by its standard deviation is 20%. If the strike (exercise) price for a certain set of options on McCall stock carry a strike price of $40..

  Determining the central limit theorem

According to the central limit theorem, for samples of size 20 drawn from a normal population with µ = 50 and s = 6, the mean of the sampling distribution.

  How much will each annual payment be

This loan is to be repaid in equal annual installment at the end of each over the next 8 years. How much will each annual payment be?

  Stock market volatility on discussion

Find information from the internet and then discuss about monetary policy, financial markets (don't dwell on GDP, supply and demand, trade policy)

  Determine the break-even point as a percent of capacity

The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd