For an X-Bar Chart Where the Standard Deviation Is Known

question 28

Multiple Choice

For an x-bar chart where the standard deviation is known, the Upper Control Limit

• A) is 3 . σ below the mean of sample means for a 3σ control chart
• B) is 3 . σ above the mean of sample means for a 3σ control chart
• C) is 3 . σ/ below the mean of sample means for a 3σ control chart
• D) is 3 . σ/ above the mean of sample means for a 3σ control chart
• E) Cannot be calculated unless the average range is known.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits, distributed as an incentive to keep investing in the company.

Stated Liquidation Value

The predetermined amount per share that shareholders are guaranteed to receive in the event of the company's liquidation as specified in the corporate charter or bond covenant.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that must be paid out before dividends to common stockholders, and with generally no voting rights.

Callable

Describes a financial security that the issuer has the right to redeem or 'call back' before its maturity date, often at a predetermined price.