Nonsuch Ltd Wishes to Know the Break-Even Point on Its

question 42

Multiple Choice

Nonsuch Ltd wishes to know the break-even point on its product, ADV, and provides the following data.
What is the break-even point in years?

• A) 3
• B) 4
• C) 5
• D) 6

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Definitions:

Assignable Variation

Assignable variation is a concept in quality control that refers to variation in a process that can be traced to specific causes, as opposed to random variation, which is inherent and cannot be easily identified and controlled.

Trend

A general direction in which something is developing or changing, often identified in data analysis.

Average Run Length

In statistical process control, it is the expected number of samples taken until a control chart signals a possible shift in process parameters.

Control Chart

A tool used in process control to monitor, control, and identify the stability of a process over time.