If a Sample of 40 Units of Output Found 500

question 1

Multiple Choice

If a sample of 40 units of output found 500 defects,then the 3-sigma upper control limit for the chart would be

• A)12.5.
• B)23.11.
• C)37.5.
• D)75.0.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Acid-test Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets.

Debt-to-equity Ratio

This proportion demonstrates the relative use of debt and shareholders' equity in the capital funding of a company's assets.

Receivable Turnover

A financial metric indicating how efficiently a company collects cash from credit sales by measuring the number of times average accounts receivable are collected over a period.