The manager of a warehouse monitors shipments. The automated tracking system mon

Question

The manager of a warehouse monitors shipments. The automated tracking system monitors every package as it moves through the facility. A sample of 25 packages is selected and weighed every day. On the basis of contracts with customers, the mean weight should be equals=22 pounds with equals=5 pounds. An X-bar chart with control limits at 12 pounds and 32 pounds has a 5% chance of a Type I error.

A. True

B. False because this control chart has a 5% chance of a Type II error.

C. False because the limits should be placed at ±2 standard errors of the mean for there to be a 5% chance of a Type I error.

D. False because the limits should be placed at ±2.58 standard errors of the mean for there to be a 5% chance of a Type I error.

Explanation / Answer

Here,

Standard error = 5/sqrt(25) = 5/5 = 1

Hence,

The statement is false because the limits should be placed at ±2 standard errors of the mean for there to be a 5% chance of a Type I error.

Option C is correct.

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