If the Distribution of Data in a Process Capability Chart

question 5

Multiple Choice

If the distribution of data in a process capability chart shows that all of the data appears between the upper and lower specification limits, but is concentrated closer to the upper specification limit, then it is likely that:

• A) the process is in control and comfortably meets specifications.
• B) the process is in control and meets specifications, but is in danger of non-conformance because it is not centred in the target value.
• C) the process is in control, but capability does not meet specifications.
• D) the process is not in control, because capability does not meet specifications.
• E) None of these responses are correct.

Understand the concept of market value versus book value and the factors that influence both.

Evaluate the financial implications of share repurchase programs versus dividend payments.

Calculate the effect of dividend declaration and payment dates on investor dividend income.

Understand the impact of earnings and retention ratio on dividend payments and shareholder wealth.

---

Definitions:

Anchoring

Anchoring is a cognitive bias in decision-making where an individual relies too heavily on an initial piece of information (the "anchor") to make subsequent judgments or estimates.

Affect-Infusion Model

A model suggesting that the mood or affective state of an individual can influence their cognitive processes and decision-making.

Moods Modify

The alteration of emotional states that can impact an individual's perception, judgement, and interpersonal interactions.

Congruent

In harmony or agreement; matching in character or kind.