An $\bar { x }$ Chart for a Normally Distributed Random Variable Has Control Limits

question 96

Multiple Choice

An $\bar { x }$ chart for a normally distributed random variable has control limits set at $\pm$ 3 standard errors from the centerline.One sample mean falls outside the control limits when the process is actually under control.The probability that this happened by chance is:

• A) .997
• B) .500
• C) .050
• D) .003

---

Definitions:

Life Insurance

A contract between an insurer and an insured individual that promises payment of a death benefit to designated beneficiaries upon the insured's death.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Enforceable

Capable of being imposed or upheld by a court of law or other authority.

Minors

Individuals who are under the age of legal adulthood and are therefore subject to certain legal protections and restrictions.