For a 3-Sigma X-Bar Chart Where the Process Standard Deviation

question 30

Multiple Choice

For a 3-sigma x-bar chart where the process standard deviation is known,the upper control limit:

• A)is 3σ below the mean of sample means for a 3σ control chart.
• B)is 3σ above the mean of sample means for a 3σ control chart.
• C)is 3σ/ below the mean of sample means for a 3σ control chart.
• D)is 3σ/ 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:

Prospective Depreciation

Depreciation calculated from the current period forward, taking into account changes in asset value or estimated useful life.

Economic Benefits

Future returns or advantages from owning an asset or from a transaction.

Property, Plant and Equipment

Tangible assets that are held for use in the production or supply of goods and services, rental to others, or administrative purposes and are expected to be used during more than one financial period.

Asset Recognition

The criteria and process for recording assets on the balance sheet when it is probable that future economic benefits will flow to the entity.