Which of the Following Is True Regarding the Process Capability

question 49

Multiple Choice

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

• A) A C_pk index value of 1 is ideal, meaning all units meet specifications.
• 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) The smaller the C_pk, the more units meet specifications.

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Definitions:

Recall Price

The price at which a company can recall its shares or bonds before their maturity date, usually at a premium.

Retained Earnings

The cumulative amount of net income earned by a company that is retained and not distributed to shareholders as dividends.

Cumulative Preferred Stock

Cumulative Preferred Stock is a type of stock that entitles its holders to receive dividends in arrears before any dividends can be paid on common stock.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in the period they were due.