XYZ Manufacturing Has Received an Order to Produce a Rod

question 77

Multiple Choice

XYZ manufacturing has received an order to produce a rod 5 inches in diameter + .04 inch. In sample runs, the machine tool that will be making the rod has been able to produce rods with a mean diameter of 4.99 inches and a standard deviation of 0.011 inch. The process capability ratio for this process is

• A) -1.44
• B) -1.21
• C) 1.21
• D) 1.44

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Definitions:

Tax Advantage

Financial benefits that apply to certain accounts or investments which are provided to encourage specific behaviors, such as saving for retirement. These advantages can lead to a reduction in tax liability.

Personal Liabilities

Debts or obligations that an individual is responsible for, as opposed to those belonging to businesses or governmental entities.

Limited Partners

Investors in a partnership who have limited liability to the extent of their investment in the partnership. They do not partake in the day-to-day management of the business.

Limited Liability

A legal structure that limits the personal financial risk for shareholders of a company to the amount they invested in the company.