Six Sigma ______

question 15

Multiple Choice

Six sigma ______.

• A)requires that ±3σ (a total width of 6σ)of the product be within specification
• B)requires that 99.5% of the product be within specification
• C)contains a formalized problem-solving approach called Bayesian approach
• D)contains a formalized problem-solving called the DMAIC process
• E)involves training only production upper- and middle-level managers

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service, a crucial concept for optimizing production and determining pricing.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, which is engaged in the production and distribution of goods or services.

Profit-Maximizing

The process or strategy of adjusting production and sale levels to achieve the highest possible profit with the given resources and market conditions.

MC = MR

This refers to the condition where a firm's marginal cost (MC) is equal to its marginal revenue (MR), often used to determine the profit-maximizing level of output in microeconomic theory.