Cp > 1 Indicates That If the Process Average Can

question 128

True/False

Cp > 1 indicates that if the process average can be centered, then more than 99.73% of the observations will fall inside the specification limits.

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Definitions:

Initial Cash Outflow

Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Profitability Index

A calculation used to determine the relative profitability of an investment, defined as the present value of future cash flows divided by the initial investment cost.

Discount Rate

The discount rate used in DCF method to establish the current worth of future financial flows.