Suppose We Use a "Run of Eight" Rule;that Is,we Declare

question 27

Multiple Choice

Suppose we use a "run of eight" rule;that is,we declare the process out of control if eight consecutive points are all above the center line of the chart or if eight consecutive points are all below the center line of the
Chart.If the process is in statistical control,what is the (approximate) probability that we declare the process out of control using this rule?

• A)0.001
• B)0.004
• C)0.008
• D)0.05

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Definitions:

Stop Payment

An order given by an account holder to their bank to not pay out or honor a check or payment that has previously been issued from their account.

Holder In Due Course

A party possessing a negotiable instrument, like a check, who has certain rights to payment free from most defenses or claims.

Check Alteration

The unauthorized modification of details on a check, such as the amount or payee, usually for fraudulent purposes.

Coffee Club

An informal group or organization formed by individuals who share a common interest in drinking coffee and social interaction.