Which Is a Rule of Thumb to Indicate an Out-Of-Control

question 10

Multiple Choice

Which is a rule of thumb to indicate an out-of-control process on the chart?

• A) Single point outside one sigma
• B) Two of three successive points outside one sigma on the same side of the centerline
• C) Four of five successive points on the same side of the centerline
• D) Nine successive points alternating in sign

---

Definitions:

Par Value

The nominal or stated value of a stock or bond, set by the issuing company and not necessarily indicative of the market value.

Paid-In Capital

Funds raised by a company through the issue of securities to investors, representing the capital provided by shareholders in exchange for shares of stock.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Balance Sheet

A financial statement that presents the financial position of a company at a specific point in time, listing assets, liabilities, and equity.