Random Cause Variation Refers to Variation in the Output of a Process

question 67

True/False

Random cause variation refers to variation in the output of a process that is unexpected and has an assignable cause.

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Definitions:

Excess Supply

A market condition where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers, typically leading to a drop in prices.

Excess Demand

A market condition where the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to shortages.

Good Increases

Refers to a situation where the quantity or quality of goods available in a market or economy grows.

Excess Demand

Occurs when the quantity demanded of a product significantly exceeds its quantity supplied, often leading to a shortage.