The Term "2 Sigma Limits" in the Context of a Control

question 5

Multiple Choice

The term "2 sigma limits" in the context of a control chart refers to the variability of the:

• A) process.
• B) population.
• C) sample.
• D) sampling distribution.
• E) none of the choices are correct.

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Definitions:

Present Discounted Value

The present value of a future amount of money or sequence of cash inflows, calculated using a designated rate of return.

Formula

A mathematical relationship or rule expressed in symbols.

Present Value

The present worth of a sum of money or series of cash flows expected in the future, calculated using a particular rate of return.

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.