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:

Demand Function

A mathematical function showing the quantity of a good demanded at different prices.

Price Elasticity

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Yen

The official currency of Japan, known internationally by its symbol ¥.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium is not achievable or not achieved in a market.