Which of the Following Is True Regarding the Process Capability

question 67

Multiple Choice

Which of the following is true regarding the process capability index C_pk?

• A)A C_pk index value of 1 is the highest possible.
• B)The larger the C_pk,the more units meet specifications.
• C)The C_pk index can only be used when the process centerline is also the specification centerline.
• D)Positive values of the C_pk index are good;negative values are bad.
• E)Its value will always be at least as large as the C_p value for the same process.

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Definitions:

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as the original cost minus accumulated depreciation.

Bonds

Long-term debt securities issued by corporations or government entities that pay periodic interest until maturity, at which point the face value is repaid.

Bond Premium

The extra amount by which a bond's market price exceeds its face value.

Annual Interest Expense

The total amount of interest payments a company owes over the course of a year on any borrowed funds.