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This is not the correct answer. See the correct answer for a complete explanation. We have been unable to determine how to arrive at this incorrect answer choice. If you have arrived at it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
This is not the correct answer. See the correct answer for a complete explanation. We have been unable to determine how to arrive at this incorrect answer choice. If you have arrived at it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
This inequality would be used to decide whether it was cost-effective to perform an investigation to see if a process is out of control. If the cost of leaving the process out of control (L) is less than the cost of investigating to see if it is outhen it is more beneficialz to leave it alone and not even investigate. However, this question is more a test of your ability to simplify an algebraic formula than it is a test of your ability to understand what the inequality is saying. Some algebraic formulas cannot be "solved" in the sense of finding the unique number that a particular variable stands for with the information you have. This is one of those problems. All you can do is simplify this inequality, so that is what you do to answer this question. The problem states that P = the probability that the process is in control. Then, it asks what is the probability that the process is in control. Therefore, to answer the question, you need to solve the inequality for the variable P by simplifying it so that P is on one side of the equation all by itself. Here is the way it works: 1. Change the inequality to an equation: L(1-P) = I + C(1-P) 2. Begin doing the same operations on both sides of the equation until you have the P isolated on one side of the equation. In algebra, when you do the same thing to both sides of an equation, you have not changed the equation. So you could do that forever, and your equation would still be saying the same thing. There are certain other things in a term that you can re-state without changing the term, also. That is what you do here. 3. Subtract C(1-P) from both sides: L(1-P) - C(1-P) = I ;4. Now you have two like terms on the left side. You can transform the left side of the equation from "L(1-P) – C(1-P)" to "(L-C)(1-P)" without changing it: (L - C)(1 - P) = I ;5. Divide both sides by (L-C): 1-P = [I / (L-C)]; 6. Subtract 1 from both sides: -P = [I/(L ? C)]-1; 7. Multiply both sides by -1 to change the negative P to a positive P: P =-[I/(L-C) + 1 ;8. Rearrange the terms on the right side: P = 1-[I/(L-C) The left side of the equation is P, the probability that the process is in control; and the right side of the equation is the answer to the question. To prove that this has not changed the equation, try using the following numbers for the variables: L = $1,000 P = 0.90 C = $250
