Aiden just landed a new full time job with a great salary. He currently lives in Virginia, but his new job is in Oregon. One of
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Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.
Answer and Explanation:
Data provided in the question
defect rate i.e. = 1.50%
the sample size = n = 200
Now
= 0.008595057
Now the 3 sigma control limits is
UCL_p = + 35p
= 0.015 + 3 (0.008595057 )
= 0.04078517
LCL_p = - 35p
= 0.015 - 3 (0.008595057 )
= 0
hence, the 3 sigma control limits are UCL 0.04078517 and LCL 0 respectively