What Is Six Sigma

question 47

Multiple Choice

What is Six Sigma?

• A) a letter in the Greek alphabet that statisticians use to measure process variability
• B) a methodology aimed at reducing the number of defects in a business process
• C) a methodology aimed at reducing the amount of variability in a business process
• D) a methodology aimed at measuring the amount of variability in a business process

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Definitions:

Effective Rate

The actual interest rate of an investment or loan, taking into account the compounding of interest.

Effective Rate

The real rate of interest earned or paid on an investment or loan in a specified period, considering compounding.

Monthly Compounded

Refers to the process of adding interest to the principal sum of a loan or deposit, recalculated on a monthly basis. This is a repeat of Compounded Monthly with a new definition focusing on recalculating interest increase.

Compounded Monthly

Compounded monthly refers to the process where the interest earned on an investment is added to the principal sum each month, causing the principal amount to grow at an increasing rate.