Multiple-choice: Choose the one best answer.

1.
In business, what must be the basis of decisions?

A. profit potential
B. competition
C. data
D. stock market changes
E. customer demands

2.
What is producer’s risk?

A. type I error
B. type S error
C. type II error
D. strict liability
E. product liability

3.
Consumer’s risk happens when statistical quality analysisfailsto result in what?

A. the proper pricing of a product
B. the proper performance of a product
C. the proper cost structure for a product
D. the proper warranty for a product
E. the scrapping or reworking of a product

4.
What two types of process variation commonly occur?

A. proactive and reactive
B. subjective and objective
C. silent and loud
D. random and nonrandom
E. outward and inward

5.
What type of variation is centered around a mean and occurs with a consistent amount of dispersion?

A. nonrandom
B. consistent
C. systematic
D. deliberate
E. random

6.
Random variation is referred to as what?

A. uncontrollable variation
B. controlled variation
C. deliberate variation
D. consistent variation
E. systematic variation

7.
Process stability means that we observe what type of variation in the process?

A. virtual variation
B. arbitrary variation
C. random variation
D. casual variation
E. nonrandom variation

8.
What do we use to determine process stability?

A. stability charts
B. procedure charts
C. progression graphs
D. process charts
E. Ishakawa charts

9.
To ensure that processes are stable, data are gathered in what?

A. batches
B. populations
C. samples
D. lots
E. sets

10.
Samples can be systematic according to what characteristics?

A. impulse or chance
B. happenstance or sequence
C. coincidence or time
D. time or sequence
E. color or time

11.
What term describes a continuous measurement such as weight, height, or volume?

A. variable
B. attribute
C. nominally scaled variable
D. intervally scaled variable
E. ordinal

12.
What theorem states that when we plot the sample means, the distribution approximates a normal distribution?

A. central limit theorem
B. cause and effect theorem
C. intermediate value theorem
D. four color theorem
E. performance theorem

Use the following information to answer questions 13 and 14.

A machine shop owner wishes to monitor the diameter of an engine-boring operation. He obtains 8 samples of 5 and records the following data:

Sample #
1 2 3 4 5 6 7 8
5.1 4.7 4.3 4.6 4.6 4.8 4.9 4.3
4.4 4.5 4.6 4.4 4.3 4.3 5.1 4.8
4.7 4.9 4.4 5 4.7 4.8 4.5 5
4.9 5.1 4.6 4.9 5 5 4.6 4.7
4.9 5.2 4.9 4.7 4.7 4.3 4.7 5.2

13.
What is the center line for a chart that monitors process dispersion?

A. 0.50
B. 0.55
C. 0.60
D. 0.69
E. 0.80

14.
What should the lower and upper control limits be for anx-bar chart?

A. (5.00, 8.00)
B. (–1.50, 1.50)
C. (4.33, 5.13)
D. (0.00, 1.45)
E. (–5.10, 5.10)

15.
What term refers to the ability of a process to produce a product that meets specifications?

A. procedure potential
B. method aptitude
C. content capability
D. process capability
E. method potential