Which of the Following Statements Is TRUE

question 179

Multiple Choice

Which of the following statements is TRUE?

• A) A process can be out of statistical control but still exhibit process capability.
• B) Process capability refers to the ability to meet a product's design specifications.
• C) Process capability can be determined for manufactured products only, not services.
• D) A process in statistical control necessarily exhibits process capability.

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Definitions:

Exponential Smoothing

A statistical technique for forecasting where recent observations are given progressively higher weights, reducing the importance of older data.

Forecast Error

The difference between the actual demand and the forecasted demand, indicating the accuracy of forecasting methods.

Moving Average

A statistical method used to analyze data points by creating a series of averages of different subsets of the full data set.

Excel Function

A predefined formula in Microsoft Excel that performs calculations using specific values in a particular order.