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Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table.
What is Floyd Electric's process capability index?
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a specific period.
LIFO
An acronym for "Last In, First Out," a method used in inventory management and accounting to value inventory and calculate cost of goods sold.
Taxable Income
Taxable income is the amount of an individual's or a company's income used to calculate how much tax they owe to the government in a given tax year.
Tax Advantage
Financial benefits granted by government taxation policies, such as deductions, exclusions, or credits, to encourage certain activities or investments.
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