For a P-Chart or C-Chart, What Is the Implication of a Negative

question 40

Multiple Choice

For a p-chart or c-chart, what is the implication of a negative value for the LCL?

• A) A calculation error must have occurred.
• B) The value of sigma must be reduced.
• C) The process has too many errors.
• D) The process is in a state of control.
• E) The LCL can effectively be rounded up to 0.

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Definitions:

Marginal Costs

Marginal Costs represent the change in total cost that arises from producing one additional unit of a good or service.

Average Variable Costs

The cost per unit of variable inputs divided by the total output, indicative of the average amount spent on variable costs per unit of output produced.

TFC

Total Fixed Cost, which is the sum of all costs that remain constant regardless of the level of production or output.

TVC

Total Variable Costs, which are the costs that change with the level of production or service delivery.