You Have Just Used the Capability Index (Cpk) Formulas to Compute

question 58

Multiple Choice

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers?

• A)The true capability index value is 1.
• B)The mean of the production process has shifted to the left of the design limits.
• C)The mean of the production process has shifted to the right of the design limits.
• D)The mean has not shifted at all.
• E)The true capability index value is between 1.5 and 1.

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Definitions:

Present Value

The immediate value of a prospective sum of money or stream of cash flows, using a specific interest rate for calculation.

Equivalent

A term expressing a state of equality or equivalency in value, function, or meaning.

Cash Held

Physical money held by a business in its cash registers or cash box, used for daily operations.

Present Value

The present-day valuation of coming monetary sums or cash flow sequences, upon applying a defined rate of return.