The Central Line on a P- Chart Is 0

question 22

Multiple Choice

The central line on a p- chart is 0.50 with an UCL of 0.65 and a LCL of 0.35. The results of the next six samples are 0.60, 0.37, 0.45, 0.48, 0.53, and 0.62. What should you do?

• A) Explore the assignable causes because three observations are above the central line.
• B) Explore assignable causes because there is a run.
• C) Increase the sample size to get a better measure.
• D) Nothing; the process is behaving as expected.

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Definitions:

First-In, First-Out

A method for managing inventories and accounting, assuming that the earliest goods purchased are the first to be sold or used.

Inventory Costing

Methods used to value and account for inventory, including Specific Identification, FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and Weighted Average.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs incurred to convert raw materials into finished products.

First-In, First-Out

A rephrased definition: An accounting method used to value inventory and calculate cost of goods sold, assuming the earliest goods purchased are the first to be sold.