If the Cpk Index Exceeds 1

question 130

Multiple Choice

If the Cpk index exceeds 1:

• A)the AQL must be smaller than the LTPD.
• B)σ must be less than one-third of the absolute value of the difference between each specification limit and the process mean.
• C)the x-bar chart must indicate that the process is in control.
• D)the process is capable of Six Sigma quality.
• E)the process is characterized as "not capable."

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Definitions:

Sunk Costs

Costs that have been spent and are non-recoverable.

Erosion Costs

Costs that occur when a new project or investment negatively impacts the revenue or profits of existing projects or investments.

Financing Costs

Expenses incurred by a company or individual in the process of raising capital through debt or equity.

Erosion

In finance, it refers to the gradual decline of an asset's value, or the negative impact one investment can have on the value of an existing investment.