The Origin of the Term "Six Sigma" Came from a Statistical

question 41

Multiple Choice

The origin of the term "Six Sigma" came from a statistical measure that equates to _____ or fewer errors or defects per million opportunities.

• A) 4.5
• B) 3.4
• C) 6.8
• D) 2.6

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Definitions:

Fixed Cost

Fixed cost refers to expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Sunk Cost

Expenditures that have already been incurred and cannot be recovered, which should not affect future decision-making.

Opportunity Cost

Represents the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

Ticket Price

The cost associated with purchasing a ticket to gain entry to an event, performance, or mode of transportation.