You Have Just Used the Capability Index (Cpk)formulas to Compute

question 39

Multiple Choice

You have just used the capability index (Cpk) formulas to compute the two values "min [1,1]." Which of the following is the proper interpretation of these numbers?

• A) The true capability index value is exactly 1
• B) The mean of the production process has shifted to the left of the design limits
• C) The mean of the production process has shifted to the right of the design limits
• D) The mean has not shifted at all
• E) None of the above

---

Definitions:

Profitability

The financial metric used to gauge the degree to which a company or organization generates profit relative to its revenue and overall costs.

Breakeven Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, resulting in no net loss or gain.

What-If Calculations

Analytical scenarios used to predict outcomes by changing variables or conditions to understand potential impacts on results.

Projected Cost

An estimate of the total expenses expected to be incurred for a particular project or activity in the future.