A Run Test Is Used

question 229

Multiple Choice

A run test is used:

• A) to examine variability in acceptance sampling plans.
• B) in acceptance sampling to establish control.
• C) to examine points in a control chart to check for natural variability.
• D) to examine points in a control chart to check for nonrandom variability.
• E) to test the validity of the Central Limit Theorem.

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Definitions:

Per Month

A recurring or regular interval of payment or calculation that occurs every month.

Strip Bonds

Bonds that have had their principal and coupon payments separated, or "stripped", creating two distinct types of securities: zero-coupon bonds and interest payment coupons.

Compounded Monthly

Refers to the process of adding interest to the principal balance of a loan or investment on a monthly basis, allowing the interest to then earn interest in the subsequent months.

Quadruple

To multiply or increase fourfold; also refers to a quantity that is four times as large as another.