The Upper and Lower Specifications for a Service Are 10

question 18

Multiple Choice

The upper and lower specifications for a service are 10 min. and 8 min., respectively. The process standard deviation is 0.25 min. and the process average is 9 min. What conclusion can be drawn?

• A) The process is capable.
• B) The process is not capable because the process average is out of control.
• C) The process is not capable because the process variability is too great.
• D) The specifications should be changed to 9.75 and 8.25, respectively.

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Definitions:

Common Stock

equity securities that represent ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Investing Activities

Transactions related to the acquisition or disposal of non-current assets, including securities, property, and equipment.

Net Cash Provided

The amount of cash generated by a company, typically from operating, investing, and financing activities, minus cash outflows.

Par Value

The face value of a stock or bond as designated by the issuer, which has little relation to its market value but is important for accounting purposes.