Which Is Not a Characteristic of a P-Chart

question 19

Multiple Choice

Which is not a characteristic of a p-chart?

• A)It shows the number of defects per item being inspected.
• B)It measures the fraction of nonconforming items in a sample.
• C)It is based on the binomial distribution (or its normal approximation).
• D)It will have varying control limits if the sample size is changing.

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Definitions:

Accruals

Accounting method recognizing revenue when earned and expenses when incurred, regardless of when cash transactions occur.

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.