Which of the Following Is True of Control Charts

question 15

Multiple Choice

Which of the following is true of control charts

• A) Control charts can only be used for processes that have a very high sigma level.
• B) The use of small sample sizes in control charts increases the chances that a process may have changed during the sampling interval.
• C) Conventional statistical process control charts have the lowest frequency of false alarms.
• D) Standard control charts are not effective when the rate of defects is extremely low.

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Definitions:

Timing

The selection of the best moment or speed at which to execute an action or operation.

Cash-Based Measure

An accounting method that recognizes revenues and expenses only when cash is exchanged.

Cash Flow

The overall sum of funds moving into and out of a company, particularly how it impacts the availability of cash.

Average Total Assets

A measure used to evaluate a company's efficiency at using its assets by calculating the average of its total assets over a specific period.