A Point Which Is Outside of the Lower Control Limit

question 107

Multiple Choice

A point which is outside of the lower control limit on an R-chart:

• A)is an indication that no process variation is present.
• B)should be ignored because it signifies very low process variation.
• C)should be investigated because it could indicate improvements in the methods used in a process.
• D)should be ignored unless another point is outside that limit.
• E)is impossible because the lower limit is always zero.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, affecting demand when the price of one changes.

Papayas

No real economic definition; presumably referring to the tropical fruit as a commodity in the context of trade, agriculture, or market pricing.

Grapefruit

A large, tart citrus fruit with a segmented, juicy interior, often eaten for breakfast or used in culinary recipes.

Equilibrium Price

The price point in the market where the amount of goods being offered is the same as the amount of goods being sought by consumers.