The Formulas for Determining the Upper and Lower Control Limits

question 157

Multiple Choice

The formulas for determining the upper and lower control limits are based on the number of standard deviations, z, from the process average. Management usually selects a z value of _______because it wants a high probability that these sample values will fall within the control limits.

• A) one
• B) two
• C) three
• D) six

---

Definitions:

Product

An item or service created through a process and offered to a market to satisfy a want or need.

Joint Venture

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and profits.

Contractual Arrangement

An agreement between two or more parties that creates enforceable obligations and rights for each party, often documented legally.

Foreign Firm

A company that is based, incorporated, or originates in a country different from the market it operates in or sells its products to.