A Company Produces a Product Which Is Designed to Weigh

question 17

Multiple Choice

A company produces a product which is designed to weigh 10 oz., with a tolerance of 0.5 oz. The process produces products with an average weight of 9.95 oz. and a standard deviation of 0.10 oz. According to the process capability index

• A) the process mean is off centre and most of the items are defective.
• B) the process is capable of meeting design specifications.
• C) the process mean is centred on the design target.
• D) none of the above.

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Definitions:

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.

Revenue

The total income received by a company from its normal business activities, before any expenses are subtracted.

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.