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Data Analysis and Decision Making

A production manager is interested in determing the typical proportion of defective items in a shipment of one of the computer components that her company manufactures. The spreadsheet provided in the file P02_02.xls contains the proportion of defective components for each of 500 radomly selected shipments collected during a 1- month period. is the mean, median, or mode the most appropriate measure of central location for these data?

What I am looking for:

1. I have the definitions for mean, median, and mode. However, I am somewhat confused and I apologize. I am thinking that mode would be most appropriate based on the definition given in the text. Albright, Winston, and Zappe (2006) write, "The mode is the most frequently occuring value" (p. 84).

A. Is my reasoning right on this question?

B. Is the question asking for something mathematical that I am not seeing?

Please help!!

Solution Preview

A. Yes, your reasoning is correct in that in this case, mode is the most appropriate population statistic. The central location would be best indicated by the maximum number of defective items produced in each of ...

Solution Summary

Data analysis and decision making is discussed.