You Have Just Used the Capability Index (Cpk) Formulas to Compute

question 58

Multiple Choice

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers?

• A)The true capability index value is 1.
• B)The mean of the production process has shifted to the left of the design limits.
• C)The mean of the production process has shifted to the right of the design limits.
• D)The mean has not shifted at all.
• E)The true capability index value is between 1.5 and 1.

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Definitions:

Corporation's Resources

The assets, both tangible and intangible, that a corporation has available for use in the production of goods or the provision of services.

Cost Concept

An accounting principle that states that all goods and services purchased by a business should be recorded at their cost price.

Appraisal

The process of professionally estimating the value of a property, typically performed by a certified appraiser.

Market Value

The current price at which an asset or service can be bought or sold in the open market.