Which of the Following Statements About Six Sigma Quality Programs

question 2

Multiple Choice

Which of the following statements about Six Sigma quality programs is true?

• A) While Six Sigma programs often improve the efficiency of numerous operating processes, there is evidence that the approach can stifle innovative activities.
• B) Six Sigma is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations and 100 percent accuracy in performing tasks.
• C) Six Sigma's DMAIC process is a particularly good vehicle for improving performance when there are only small variations in how well an activity is performed.
• D) The focus of Six Sigma programs is on the development of new products or new business processes but not on improving existing products or business processes.
• E) Six Sigma is a system of statistical procedures for eliminating 92 percent of the variability in how a task is performed.

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Definitions:

Binomial Option Model

A mathematical model used to price options by breaking down the option's life into discrete time intervals and calculating the value at each step.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage on a loan or investment.

Option Price

The price at which a specific derivative contract can be exercised, representing the cost to buy (call option) or sell (put option) an underlying asset at the strike price.

Riskless Arbitrage

An investment strategy that involves exploiting price differences of identical or similar financial instruments on different markets or in different forms.