Piston Rings for an Automotive Engine Are Produced by a Forging

question 84

Multiple Choice

Piston rings for an automotive engine are produced by a forging process.We monitor the inside diameter of the rings manufactured by this process using an and an s control chart.Samples of size 4 are taken at regular intervals,and the sample means and standard deviations are computed and plotted on the charts in time order.The overall mean of the sample means is 73.812 millimeters,and the mean of the sample standard deviations is 0.022 millimeters.The control chart constants are (partially) reproduced below. What is the value of the upper control limit for the chart?

• A)73.834 millimeters
• B)73.848 millimeters
• C)73.878 millimeters
• D)154.119 millimeters

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Definitions:

Tobin's Separation Property

A principle in investment theory that suggests the investment decision can be separated from the financing decision, primarily developed by James Tobin.

Risk Aversion

The inclination to avoid taking risks, preferring safety over potential higher returns.

Optimal Risky Portfolio

A portfolio that offers the highest expected return for a given level of risk.

Systematic Variance

The portion of a security's return variance that is attributable to macroeconomic factors and cannot be diversified away.