A Company Produces a Product Which Is Designed to Weigh

question 80

Multiple Choice

A company produces a product which is designed to weigh 10 oz. ,with a tolerance of oz.The process produces products with an average weight of 9.95 oz.and a standard deviation of 0.10 oz.The process capability ratio for this process is with z = 3.

• A)1.67
• B)0
• C)0.8333
• D)-1.67

---

Definitions:

Firm's Equity

The value of a company's shares owned by its shareholders, representing ownership interest in the company.

Firm's Debt

The total amount of money that a company owes to creditors, encompassing both short-term and long-term liabilities.

Assembly Plant

A factory where parts are assembled into finished products.

Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, and depreciation.