Piston Rings for an Automotive Engine Are Produced by a Forging

question 2

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 = 73.97 millimeters,and the sample standard deviation of all measurements is s = 0.03 millimeters.Specifications call for the inside diameter of the rings to be 74.00 ± 0.10 millimeters.The control chart constants are (partially) reproduced below. What is the value of an estimate of the capability index C_pk?

• A)0.72
• B)0.78
• C)1.02
• D)1.11

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Definitions:

Beta

An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.

Firm-specific Risk

The portion of an investment's risk that is attributable to the unique circumstances of the specific company, as opposed to market-wide risk.

Diversification

Diversification is an investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).