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Chapter 2: Q155SE (page 143)

Defects in new automobiles.Consider the following data from the automobile industry. All cars produced on a particular day were inspected for defects. The 145 defects found were categorized by type as shown in the accompanying table.

Defect Type

Number

Accessories

Body

Electrical

Engine

Transmission

50

70

10

5

10

a.Construct a Pareto diagram for the data. Use the graph to identify the most frequently observed type of defect.

b.All 70 car body defects were further classified as to type. The frequencies are provided in the following table. Form a Pareto diagram for the type of body defect. (Adding this graph to the original Pareto diagram of part a is called exploding the Pareto diagram.) Interpret the result. What type of body defect should be targeted for special attention?

Body Defect

Number

Chrome

Dents

Paint

Upholstery

Windshield

2

25

30

10

3

Short Answer

Expert verified

a. Body defect

b.

Pareto diagram for body defect:

Pareto diagram for Paint:

Step by step solution

01

Constructing a Pareto diagram

First, we will arrange the data in descending order,

Now we will plot this data.

The most frequently observed defect is body defect.

02

Creating the Pareto diagram

Arranging the data in descending order,

Body defect is classified into various defects and the most common defect is paint followed by dents and upholstery. The least common problems with the body of a car are windshield and chrome.

As thefrequently repeated body defect is painted,it should be given special attention.

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Most popular questions from this chapter

Microsoft program security issues. To help its users combat malicious attacks (e.g., worms, viruses) on its computer software, Microsoft periodically issues a security bulletin that reports the software affected by the vulnerability. In Computers & Security (July 2013), researchers focused on reported security issues with three Microsoft products: Office, Windows, and Explorer

a. In a sample of 50 security bulletins issued in a recent year, 32 reported a security issue with Windows, 6 with Explorer, and 12 with Office. Construct a pie chart to describe the Microsoft products with security issues. Which product had the lowest proportion of security issues?

b. The researchers also categorized the security bulletins according to the expected repercussion of the vulnerability. Categories were Denial of service, Information disclosure, Remote code execution, Spoofing, and Privilege elevation. Suppose that of the 50 bulletins sampled, the following numbers of bulletins were classified into each respective category: 6, 8, 22, 3, 11. Construct a Pareto diagram to describe the expected repercussions from security issues. Based on the graph, what repercussion would you advise Microsoft to focus on?

Nuclear power plants.According to the Nuclear Energy Institute (NEI), 62 nuclear power plants were operating in the United States in 2015. The table at top of the next column lists the 30 states that operate nuclear power

plants, the number of plants in each state, and whether the state has passed legislation supporting nuclear energy expansion (regulated) or not (deregulated).

a.Find the mean, median, and mode of the number of power plants per state. Interpret these values.

b.Repeat part afor the regulated states only.

c.Repeat part afor the deregulated states only.

d.Compare the results, parts band c.What inference can you make about the impact that state regulation has on the number of nuclear power plants?

e.Eliminate the state with the largest number of power plants from the data set and repeat part a.What effect does dropping this measurement have on the measures of central tendency found in part a?

f.Arrange the 30 values in the table from lowest to highest. Next, eliminate the lowest two values and the highest two values from the data set and find the mean of the remaining data values. The result is called a 10% trimmed meanbecause it is calculated after removing the highest 10% and the lowest 10% of the data values. What advantages does a trimmed mean have over the regular arithmetic mean?

State

Status

Number of Power Plants

Alabama

Regulated

2

Arizona

Regulated

1

Arkansas

Regulated

1

California

Regulated

1

Connecticut

Deregulated

1

Florida

Regulated

3

Georgia

Regulated

2

Illinois

Deregulated

6

Iowa

Deregulated

1

Kansas

Regulated

1

Louisiana

Regulated

2

Maryland

Deregulated

1

Massachusetts

Deregulated

1

Michigan

Deregulated

3

Minnesota

Regulated

2

Mississippi

Regulated

1

Missouri

Regulated

1

Nebraska

Regulated

2

New Hampshire

Deregulated

1

New Jersey

Deregulated

3

New York

Deregulated

4

North Carolina

Regulated

3

Ohio

Deregulated

2

Pennsylvania

Deregulated

5

South Carolina

Regulated

4

Tennessee

Regulated

2

Texas

Deregulated

2

Virginia

Regulated

2

Washington

Regulated

1

Wisconsin

Deregulated

1

Budget lapsing at army hospitals.Accountants use the term budget lapsingto describe the situation that occurs when unspent funds do not carry over from one budgeting period to the next. Due to budget lapsing, U.S. army hospitals tend to stockpile pharmaceuticals and other supplies toward the end of the fiscal year, leading to a spike in expenditures. This phenomenon was investigated in the Journal of Management Accounting Research(Vol. 19, 2007). Data on expenses per full-timeequivalent employees for a sample of 1,751 army hospitalsyielded the following summary statistics: xbar= \(6,563,m= \)6,232, s= \(2,484, QL = \)5,309 and QU = \(7,216.

a.Interpret, practically, the measures of relative standing.

b.Compute the interquartile range, IQR, for the data.

c.What proportion of the 1,751 army hospitals have expenses between \)5,309 and $7,216?

Calculate the range, variance, and standard deviation for the following samples:

a.39, 42, 40, 37, 41

b.100, 4, 7, 96, 80, 3, 1, 10, 2

c.100, 4, 7, 30, 80, 30, 42, 2

Calculate the mode, mean, and median of the following data:

18 10 15 13 17 15 12 15 18 16 11
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