Which of the Following Statements Is NOT Correct

question 42

Multiple Choice

Which of the following statements is NOT correct?

• A) Control limits represent the "voice of the process."
• B) The average of the measurement data collected is the same as the center line.
• C) Six sigma equates to 99.74% of output within the control limits.
• D) A normal distribution of a process under control will include a very small amount outside the control limits.

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Definitions:

Nonsystematic Standard Deviation

A measure of variance in a portfolio's total returns attributable to factors specific to individual securities, as opposed to the market.

Equally-Weighted Portfolio

An equally-weighted portfolio is an investment strategy that gives the same weight, or importance, to each asset in the portfolio, regardless of the size or market value of the companies.

Securities

Securities that signify either an equity stake in a corporation that is publicly traded, a debt interest in a company or government entity, or ownership rights as delineated by an option.

HML Beta

A measure used in finance to assess the sensitivity of an asset or portfolio to a value factor, defined as high minus low book-to-market stocks.