A Process Control Chart Can Be Used to Determine Whether

question 9

True/False

A process control chart can be used to determine whether the process average has shifted up or down, but is not useful for determining whether the process is just drifting in an upward or downward direction.

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Definitions:

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

Simplified

Made easier to understand or do; reduced in complexity.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Invisible Hand

A metaphor introduced by Adam Smith to describe how individuals pursuing their own interests unintentionally benefit society as a whole.