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Under What Conditions Can Control Test 7 (8 Consecutive Points

question 9

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Under what conditions can control test 7 (8 consecutive points outside plus or minus one standard deviation) be applied to the X and Rm control charts for single item sampling?


Definitions:

Exchange Rate

The equivalent worth of one currency in another.

Currency

A system of money in general use in a particular country, facilitating the exchange of goods and services.

Interest Rate Parity

A theory which says that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Rates

The predetermined interest rates or currency exchange rates agreed upon for transactions that will be executed at a future date.

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