Out-Of Control Indicators May Include a Number of Conditions

question 3

Multiple Choice

Out-of control indicators may include a number of conditions. What is not one of these?

• A) at least 8 upward (or downward) consecutive changes
• B) at least 8 consecutive points above (or below) the centerline
• C) at least 1 point beyond two standard deviations from the centerline
• D) at least 4 of 5 consecutive points beyond one standard deviation from the centerline

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Definitions:

Administrative Costs

Expenses related to the general operations of a business, including salaries of senior executives, office supplies, and utilities.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and are integral to its production.

Direct Labor

The labor costs directly tied to the production of goods or services.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly traced to that product.