An Operations Manager Wants to Measure Variability in the Delivery

question 307

Multiple Choice

An operations manager wants to measure variability in the delivery time of insurance policies to clients. Which of the following quality tools most appropriately would show the level of variability?

• A) Pareto chart
• B) Histogram
• C) Scatterplot
• D) Check sheet

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Definitions:

Computation

The process of performing mathematical calculations or processing information to achieve a result.

Debt-equity Ratio

A metric that evaluates the financial leverage of a company, determined by dividing the total amount of its liabilities by its shareholder equity.

Weighted Average Cost

A financial metric that calculates the average price of various sources of capital (debt, equity, etc.), weighted by their respective use in the financing mix of a company.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often calculated using models like the Capital Asset Pricing Model (CAPM).