Operators at the Final Stage of the Syringe Assembly Process

question 16

Multiple Choice

Operators at the final stage of the syringe assembly process chose 35 consecutive observations for a capability study and arrived at an estimated minimum process capability index of:

• A)1.01.
• B)0.97.
• C)1.03.
• D)0.99.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, highlighting the impact of fixed costs.

Automobile Manufacturing

The industry involved in the design, development, production, marketing, and selling of motor vehicles.

Sensitivity Analysis

A procedure for examining the repercussions that different magnitudes of an independent variable have on a dependent variable, within the context of predetermined assumptions.

Cash Break-Even

The amount of revenue necessary to cover all cash operating expenses, ignoring non-cash costs.