You Have Just Used the Capability Index (C_pk)formulas to Compute

question 12

Multiple Choice

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

• A)The true capability index value is exactly 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)None of the above

---

Definitions:

Marginal Costs

The increase in cost resulting from the manufacture of one additional unit of a good or service.

Decreasing Costs

Situations in which costs diminish as the level of production or scale of operations increases.

Efficiency

The extent to which time, effort, or cost is well-used for the intended task or purpose.

Total Cost Function

An equation that represents the total cost incurred by a firm in the production of goods or services, as a function of output level.