A Manager Wants to Build 3-Sigma Control Limits for a Process

question 113

Multiple Choice

A manager wants to build 3-sigma control limits for a process. The target value for the mean of the process is 10 units, and the standard deviation of the process is 6. If samples of size 9 are to be taken, the UCL and LCL will be

• A) -8 and 28
• B) 16 and 4
• C) 12 and 8
• D) 4 and 16
• E) 8 and 12

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Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company’s dividend payments.

Earnings

The amount of profit a company generates during a specific period, typically reported quarterly or annually.

Expected Growth Rate

The projected annual rate at which an investment, company, or economy is expected to grow, often used to make investment decisions.