A Plot Below the Lower Control Limit on the Range

question 98

Multiple Choice

A plot below the lower control limit on the range chart
(I) should be ignored since lower variation is desirable.(II) may be an indication that process variation has decreased.(III) should be investigated for assignable cause.

• A)I and II
• B)I and III
• C)II and III
• D)II only
• E)I, II, and III

---

Definitions:

Market Power

The ability of a firm or group of firms to influence the price or control the supply of a product or service in the market.

Herfindahl Index

A measure of market concentration used to evaluate the level of competition within an industry, calculated by summing the squares of each firm's market share.

Four-Firm Concentration Ratio

A metric that measures the total market share possessed by the four largest firms within a specific industry.

Antitrust Laws

Legislation enacted by governments to prevent unfair competition, monopolies, and other practices that could detrimentally impact market health and consumer choice.