A Process Capability Ratio Reflects the Number of (Z) Sigmas

question 54

True/False

A process capability ratio reflects the number of (Z) sigmas included in the range between the upper and lower control limits.

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Definitions:

Component

A part or element of a larger system, device, or piece of equipment that is essential to its function.

Variable Expenses

Costs that change in relation to the level of activity or volume of production.

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent and salaries.

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.