A Point That Plots Below the Lower Control Limit on the Range

question 61

Multiple Choice

A point that plots below the lower control limit on the range chart:

• A)should be ignored because lower variation is desirable.
• B)should be investigated for random variation.
• C)may be an indication that process variation has decreased
• D)is not possible
• E)is due to a shift in the process mean

---

Definitions:

Break-even Point

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials.

Fixed Costs

Expenditures that do not change over a short period of time, regardless of the level of production or activity.

Break-even Point

The financial point at which total costs and total sales are equal, resulting in no net loss or gain for the business.