The Upper and Lower Specification Limits for a Component Are

question 193

Essay

The upper and lower specification limits for a component are 3.98 and 4.02 inches, respectively. The process standard deviation is .004, and the process average is 4.005 inches. Is this process capable of achieving four-sigma performance (the four-sigma performance target value is 1.33)?

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Definitions:

Optional Payment

A payment made by choice as opposed to requirement, often seen in loan agreements where the borrower may pay more than the minimum due.

Maturity Date

the specific date on which a financial instrument, such as a loan or bond, reaches its expiration and the principal is due to be repaid.

Promissory Note

A financial instrument containing a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Negotiable

Capable of being transferred or assigned from one party to another, often used in the context of financial instruments.