When Using the Statistical Control Chart to Investigate Variances

question 46

Multiple Choice

When using the statistical control chart to investigate variances

• A) managers should only investigate variances that are beyond the critical value.
• B) managers should only investigate variances that are fall below the critical value over a number of consecutive periods.
• C) any variances that go beyond the critical values are likely to be the result of random events such as employee illness.
• D) managers should estimate the critical values by averaging the variances over a number of periods.

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Definitions:

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