When Using the Statistical Control Chart to Investigate Variances

question 8

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:

Fresh

Recently made, obtained, or harvested; not stale or deteriorated.

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A bile pigment formed by the breakdown of hemoglobin in the liver.