A Process That Is Assumed to Be in Control with Limits

question 153

Multiple Choice

A process that is assumed to be in control with limits of 89 +/- 2 had sample averages of the following 87.1, 87, 87.2, 89, 90, 89.5, 88.5, and 88. Is the process in control?

• A) Yes
• B) No, one or more averages exceeded the limits.
• C) Not enough information to tell.
• D) No, there is a distinguishable trend.
• E) No, two or more consecutive points are very near the lower (or upper) limit.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced.

Purchasing Power

Purchasing power denotes the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Income

Income adjusted for inflation, reflecting the actual purchasing power of money received.

Consumer Price Index

The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households.