Fredrika Has Been Asked to Develop a Pareto Priority Index

question 14

Multiple Choice

Fredrika has been asked to develop a Pareto Priority Index for a process improvement project. She and her team have researched the situation and developed the following parameters:
Estimated lifetime cost savings: $200,000
Total estimated cost: $50,000
Forecasted project success probability: 70%
Estimated project duration: 2 years
Given this information, what is the Pareto Priority Index?

• A) 1.4
• B) 11.43
• C) .25
• D) 2.8
• E) 4.0

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Definitions:

Specific Procedure

A set of established steps or actions designed to achieve a particular outcome or result in a precise manner.

Behavior

The observable actions or reactions of humans or animals in response to external or internal stimuli.

Variable

Any characteristic whose values can change.

Testable Hypothesis

A prediction that has been formulated specifically enough so that it is clear what observations would confirm the prediction and what observations would challenge it.