Piston Rings for an Automotive Engine Are Produced by a Forging

question 28

Multiple Choice

Piston rings for an automotive engine are produced by a forging process.We wish to monitor the inside diameter of the rings manufactured by this process using an and an s control chart.Samples of size 4 are to be taken at regular intervals,and the sample means and standard deviations are computed and plotted on the charts in time order.The target values for the inside diameter are a mean of  = 75 millimeters and a standard deviation of  = 0.02 millimeters.The control chart constants are (partially) reproduced below. What is the upper control limit for the
Chart?

• A)0.03 millimeters
• B)74.97 millimeters
• C)75 millimeters
• D)75.03 millimeters

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Definitions:

Cost of Capital

The necessary rate of earnings a firm must obtain from its investments to preserve its market worth and secure capital.

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.