If the Upper and Lower Specification Limits of a Process

question 125

Multiple Choice

If the upper and lower specification limits of a process are .852 and .828,respectively,and the process standard deviation is .002,then the process capability index C_p is

• A).024
• B)2.000
• C)−2.000
• D)12.000

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Definitions:

Marginal Cost

refers to the increase in cost when producing one additional unit of output.

Average Variable Costs

Refers to the total variable costs (costs that change with production levels) divided by the quantity of output produced.

Average Fixed Costs

The total fixed costs of production divided by the total quantity of output produced, illustrating how fixed costs spread over units as output increases.