Answer and Explanation:
As per the data given in the question,
Sum of the all mean value = 151
Average of the mean value = 151 ÷ 15 = 10.067
Similarly, Sum of the all given range = 151
Average of given range value = 151÷ 15 = 10.067
Control charts for the mean and the range, using the original 15 samples :
Upper control limit(UCL) - Lower control limit(LCL) for X bar is
= 10.067 + A2 × R bar
= 10.067 + (0.223 × 10.067)
= 12.31
LCL - UCL for X bar is
= 10.067 - A2 × R bar
= 10.067 -(0.223 × 10.067)
= 7.82
Set up the R-chart by specifying the center line and three-sigma control limits below :
UCLr = D4 × r
= 1.653 × 10.07
= 16.65
r = 10.067
= 10.07
LCLr = D3 × r
= 0.347 ×10.07
= 3.49
Answer:
Firm should hire the 4th worker as MR > MC.
Explanation:
Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.
Marginal cost of hiring 4th worker:
= Total cost with 4 workers - Total cost with 3 workers
= $4,600 - $4,000
= $600
Total revenue generated by the 4th worker:
= Number of units produced by 4th worker × Price of each unit
= 50 × $15
= $750
Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.
Answer:
The correct answer is letter "B": property rights must be clearly assigned to the parties involved in the dispute.
Explanation:
Named after British lawyer and economist Ronald Coase (<em>1910-2013</em>) the Coase Theorem states when there are competitive markets and no transaction costs bargaining will lead to an efficient and mutually beneficial outcome. The theorem affirms that when property rights are defined and divided, parties will gravitate to the most efficient and beneficial outcome.
