Which of the Following Is True of a Control-Chart Analysis

question 18

Multiple Choice

Which of the following is true of a control-chart analysis?

• A) It cannot be used to detect randomness in operating results.
• B) Its control boundaries are set using historical data.
• C) It can only be used to establish average and upper limits of the measure.
• D) It can only be used to establish average and lower limits of the measure.

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Definitions:

Authority of the Principal

The legal right or power given to an agent to act on behalf of a principal in business transactions.

Estoppel

A legal principle that prevents a person from arguing something contrary to a claim or a fact that has been previously established as the truth.

Apparent Authority

A form of authority that a third party reasonably believes an agent has due to the actions of the principal, even if the agent does not have actual authority.

General Sales Agent

An individual or company authorized to sell or distribute a manufacturer's products in a specific area or market.