The Process Capability Index (Cpk) May Mislead If

question 30

Multiple Choice

The process capability index (Cpk) may mislead if:
(I) the process is not stable.
(II) the process output is not normally distributed.
(III) the process is not centered.

• A) I and II
• B) I and III
• C) II and III
• D) II only
• E) I, II, and III

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Definitions:

Tax Revenue

The funds that governments garner from taxing activities.

Deadweight Loss

An economic inefficiency that occurs when the market outcome does not maximize total benefits, often due to distortions such as taxes, subsidies, or monopolies.

Tax

A mandatory financial charge imposed by a governmental organization in order to fund various public expenditures.

Gains from Trade

Gains from trade refer to the increase in consumer and producer surplus that occurs when countries specialize in the production of goods and services in which they have a comparative advantage and then trade with others.