Statistical Thinking Is a Philosophy of Learning and Action Based

question 9

Multiple Choice

Statistical thinking is a philosophy of learning and action based on all of the following principles EXCEPT:

• A)all work occurs in a system of interconnected processes.
• B)variation exists in all processes.
• C)all variation can be traced to human error.
• D)understanding and reducing variation are keys to success.

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Definitions:

Implicit Costs

Implicit costs, also known as imputed or opportunity costs, are the costs of resources owned by the firm that are used in its own production process.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs in the production process.

Opportunity Costs

The value of the best alternative foregone when a decision is made to pursue a particular action, essentially the cost of choosing one option over another.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production, instead of earning income elsewhere.