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Talja [164]
3 years ago
9

A process that produces computer chips has a mean of .04 defective chip and a standard deviation of .003 chip. The allowable var

iation is from .03 to .05 defective. a. Compute the capability index for the process. b. Is the process capable?
Business
1 answer:
Reil [10]3 years ago
3 0

Answer:

<em>A. 1.111</em>

<em>B. The process is not capable</em>

Explanation:

Part A

Capacity index help to determine the performance of a process and how it could perform in the future. A capacity index of above 1.33 means that the process is capable but a capacity index below 1.33 means that the process is not capable. The capacity index can be calculated using equation 1;

From the mean  which is 0.5, it can be determined that the process is a centered process.

For centered process, the mean = 0.5 x (Upper s. - Lower S.) = 0.5 x 0,02 = 0.04

so the capacity index for centered mean will be used

C_{p} =\frac{Upper Specification-Lower Specification}{6 * standard deviation} ................................................1

Given standard deviation = 0.003

upper specification = 0.05

lower specification = 0.03

C_{p} =\frac{0.05- 0.03}{6 * 0.003}\\\\C_{p} = \frac{0.02}{0.018} \\\\C_{p}  = 1.111

Therefore the capacity index of the process is 1.111

Part B

The capacity index of the process is 1.111 and it is less than 1.33, this means that the process is not capable.

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Answer:

The correct words for the blank spaces are: are low-risk investments; are high-risk investments.

Explanation:

Bonds are considered to be <em>low-risk investments </em>compared to stocks because an interest rate fixed payment is made with bonds in regular periods. Instead, stocks are <em>high-risk investment</em>s since they payout dividends to stakeholders based on a company's profits implying investors will only earn a profit if the company has been able to earn income during a period. Even if that happens, the firms can retain the earnings for reinvestment.

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Molodets [167]

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A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
WARRIOR [948]

Answer:

. $11.98

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