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Sales commissions and raw material are variable costs.
Operating Characteristic Curve
A graph that shows the capability of a test to distinguish between different states, such as defective and non-defective items.
Type II Error
The statistical mistake of failing to reject a false null hypothesis, or the error of not detecting an effect or difference when one truly exists.
Type I Error
Incorrectly dismissing a true null hypothesis as false.
Control Chart
A graphical tool used in quality control processes to monitor changes and variations in a process over time.
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