Which of the Following Is True of a P-Chart

question 97

Multiple Choice

Which of the following is true of a p-chart?

• A)The lower control limit is found by subtracting a fraction from the average number of defects.
• B)The lower control limit indicates the minimum acceptable number of defects.
• C)The lower control limit equals D3 times p-bar.
• D)The lower control limit may be at zero.
• E)The lower control limit is the same as the lot tolerance percent defective.

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Definitions:

Marginal Cost

The additional expense incurred from producing and selling one more unit of a good or service.

Profits

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Output

The total amount of goods or services produced by a company, industry, or economic system.

Marginal Costs

The additional cost incurred to produce an extra unit of a product or service.