Distinguish Between Specification and Control Limits $99.5 \mathrm { cP }$

question 4

Short Answer

Distinguish between specification and control limits.
-Machine oil is used by clothing manufacturers to lubricate and protect sewing
Machines. A company that produces machine oil must ensure that the viscosity of its
Product meets customer requirements. Consequently, the viscosity of every batch of oil
Produced is measured. Suppose that the process mean is 101 cP and the process standard
Deviation is 1.50 cP. What are the limits for a runs chart to be used to see that the process
Remains control? A. $99.5 \mathrm { cP }$ and $102.5 \mathrm { cP }$
B. $96.5 \mathrm { cP }$ and $105.5 \mathrm { cP }$
C. $95.5 \mathrm { cP }$ and $106.5 \mathrm { cP }$
D. $92.5 \mathrm { cP }$ and $110.5 \mathrm { cP }$
E. None of the above

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Definitions:

Net Investment Income

The income generated from investments after deducting all related expenses, such as interest payments, fees, and taxes.

Purchases of Real Assets

The acquisition of physical or tangible assets such as real estate, equipment, or commodities.

Financial Account

A component of the balance of payments that records transactions that cause a change in ownership of financial assets and liabilities between residents and non-residents.

Balance Surplus

The amount by which income exceeds expenditures in a budget, or the excess of receipts over payments in an account.