The Mean of the Sample Means and the Standard Deviation

question 32

Multiple Choice

The mean of the sample means and the standard deviation of 50 samples of size 5 taken from a production process under control are found to be 300 and 25, respectively. The lower control limit for the chart is located at:

• A) 333.54
• B) 289.39
• C) 310.61
• D) 266.46
• E) 342.88

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Definitions:

Quick Ratio

A metric to evaluate a company's short-term liquidity position, calculated by dividing liquid assets by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Acid-Test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its short-term liabilities with its most liquid assets.

Quick Ratio

A liquidity measure indicating a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.