Quality Control Charts Usually Have a Central Line and Upper

question 13

Multiple Choice

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?

• A) A single point falls above or below the control limits.
• B) Behavior is normal.
• C) A large number of plots are on or near the central line.
• D) There is no real trend in any direction.
• E) There is a change in raw materials or operators.

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Definitions:

Demand For Labor

The total amount of workers that employers want to hire at a given wage rate and time period.

Opportunity Cost

The loss of potential gain from other alternatives when one option is chosen.

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.