When a Chart Helps Teams Separate the Few Vital Problems

question 16

Multiple Choice

When a chart helps teams separate the few vital problems and causes from the many trivial ones, it is a

• A) Flowchart
• B) Cause and effect diagram
• C) Check sheet
• D) Pareto chart
• E) Run chart
• F) Scatter diagram

---

Definitions:

Present Value Amount

The current value of a future sum of money or stream of cash flows given a specified rate of return, important in discounting and investment decisions.

Rate of Earnings

A measure of profitability that indicates how much profits a company generates from its operations.

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of payments, considering a specific interest rate.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.