Other Things Remaining the Same, and Assuming Thatis Smaller Than

question 15

Multiple Choice

Other things remaining the same, and assuming thatis smaller than USL and larger than LSL, if the standard deviation (σ) of the process decreases, process capability index (Cpk) of the process will
I. Stay the same
II. Will always increase
III. Will always decrease
IV. Will sometimes increase

• A) I
• B) II
• C) III
• D) Either II or III
• E) IV

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Definitions:

Disposal Group

A set of assets and possibly liabilities that a company plans to dispose of in a single transaction or plan.

IFRS Rules

The set of international accounting standards issued by the International Accounting Standards Board (IASB) that dictate how particular types of transactions and other events should be reported in financial statements.

U.S.GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used to compile financial statements.

Forecasted Cash Flow

An estimate of the amount of cash a company will receive and spend over a future period, typically used for budgeting and planning purposes.