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:

Debt-Equity Ratio

An indicator of a firm's use of financial debt, found by dividing the total amount of liabilities by the equity owned by stockholders.

Retention Ratio

The proportion of net income that is retained in the company rather than paid out to shareholders as dividends.

Growth Rate

A measure of the increase in size, number, value, or strength of a business or other entity's key metric over a specified period of time.

Pro Forma

Financial statements prepared in advance of a planned transaction, such as a merger, acquisition, or new capital investment, showing the projected financial results.