Studies on a Machine That Molds Plastic Water Pipe Indicate

question 2

Multiple Choice

Studies on a machine that molds plastic water pipe indicate that when it is injecting 25 mm diameter pipe,the process standard deviation is 0.50 mm.The 25 mm pipe has a specification of 25 mm plus or minus 1.0 mm.What is the process capability index (Cp) ?

• A)0.50
• B)0.67
• C)1.00
• D)2.00

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Definitions:

Fama and French

A model developed by Eugene Fama and Kenneth French that expands on the Capital Asset Pricing Model (CAPM) by adding size risk and value risk factors to the market risk factor.

Technical Analysis

A technique for appraising securities through the study of market-generated statistics, like previous prices and transaction volumes.

Predictable Patterns

Patterns in financial markets or data sets that tend to repeat themselves over time, allowing for the anticipation of certain market movements under specific conditions.

P/E Ratios

The Price-to-Earnings Ratio is a valuation metric used to measure a company's current share price relative to its per-share earnings.