By Design, a Required Dimension on a Part Is 0

question 3

Multiple Choice

By design, a required dimension on a part is 0.575 cm plus or minus 0.008 cm. Assume that the process producing this part is stable with a mean of 0.579 cm and standard deviation of 0.002 cm. What is the Cp index?

• A) 1.33
• B) 2.00
• C) 0.67
• D) 1.00
• E) 0.33

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Retained Earnings

Profits that are held back in a company to be reinvested in its operations or to pay down debt rather than being distributed to shareholders as dividends.

Treasury Stock

Stocks that the issuing entity initially distributed and then bought back, decreasing the number of shares available for trade on the open market.

Par Value

The face or nominal value of a bond, stock share, or coupon as specified on a certificate or instrument.