Instead of Having One Worker Perform All Eight Steps to Process

question 84

Multiple Choice

Instead of having one worker perform all eight steps to process a customer, an operations manager assigns each step to a different worker. In doing so, the operations manager has increased the:

• A) number of phases.
• B) number of channels.
• C) arrival rate.
• D) interarrival rate.

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Definitions:

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.

Semistrong-form Efficient

Refers to a market efficiency form where prices include all publicly available information, including both historical and newly released financial data.

Weak-form Efficient

A level of market efficiency that assumes all past trading information is already reflected in stock prices, thus negating the ability to gain higher returns through analysis of historical prices.

Survivorship Bias

Survivorship bias is the logical error of concentrating on the entities or people that made it past some selection process and overlooking those that did not, often leading to false conclusions.