Which of the Following Statements About the Concept of Six

question 103

Multiple Choice

Which of the following statements about the concept of six sigma is true?

• A) The system was developed by GE.
• B) The lower the sigma number, the lower the level of defects.
• C) It is designed to choose the correct organizational process for the job.
• D) It indicates how often defects in a process are likely to occur.
• E) Six sigma always improves the bottom line.

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Definitions:

Present Value Factors

Mathematical factors used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Yield 10%

Represents the annual return on an investment, expressed as a percentage of the investment's cost. Here, the investment is expected to return 10% annually.

Bond Interest Expense

The cost that an issuer of bonds incurs over the bond term as interest payments to bondholders, as dictated by the interest rate of the bond.

Floating-rate Debt

A form of borrowing where the interest rate varies over time with market conditions, opposed to fixed-rate debt.