The Purpose of Control Charts Is to

question 8

Multiple Choice

The purpose of control charts is to

• A)estimate the proportion of output that is acceptable.
• B)weed out defective items.
• C)determine if the output is within tolerances/specifications.
• D)distinguish between random variation and assignable variation in the process.
• E)provide meaningful work for quality inspectors.

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Definitions:

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Rising Prices

This term indicates an economic situation where the general level of prices of goods and services in an economy increases over a period.

Net Income

The amount of money a company earns after all expenses and taxes have been subtracted from its total revenue.