Up to Three Standard Deviations Above or Below the Centerline

question 44

Multiple Choice

Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for:

• A) Type I errors.
• B) about 95.5% variation.
• C) natural variation.
• D) all types of variation.
• E) assignable variation.

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Definitions:

Flow Measure

A quantitative assessment that represents movement of items over time, often used in economics to track variables like income.

Consumption

The consumption of products and services by individuals in a household.

Impossibility Theorem

A proposition demonstrated by Kenneth Arrow showing that no system of aggregating individual preferences into social decisions will always yield consistent, nonarbitrary results.

Voting Paradox

A simple demonstration of how majority-rule voting can lead to seemingly contradictory and inconsistent results. A commonly cited illustration of the kind of inconsistency described in the impossibility theorem.