A Process That Is Assumed to Be in Control with Limits

question 98

Multiple Choice

A process that is assumed to be in control with limits of 89 ± 2 had sample averages for the x-bar chart of the following: 87.1, 87, 87.2, 89, 90, 88.5, 89.5, and 88. Is the process in control?

• A) Yes.
• B) No, one or more averages exceeded the limits.
• C) Not enough information to tell.
• D) No, there is a distinguishable trend.
• E) No, two or more consecutive points are very near the lower (or upper) limit.

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Definitions:

Financial Advantage

The position of having superior financial resources or capabilities compared to others, providing a competitive edge.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Annual Financial Advantage

Describes the financial benefit or gain achieved by an entity over the course of a fiscal year, encompassing all revenue streams and savings.

Variable Costs

Costs that vary directly with the level of business activity.