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1. Costs incurred to correct nonconforming work before the product is delivered to the customer are referred to as:
a. Detection costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
e. None of the above.
2. If a process is deemed to be functioning properly when it is in fact out of control, which of the following is true?
a. A Type I error has occurred which is the producer's risk.
b. A Type II error has occurred which is the producer's risk.
c. A Type I error has occurred which is the consumer's risk.
d. A Type II error has occurred which is the consumer's risk.
3. A control chart is used to plot average values of a performance measure over time to determine if the performance mean and variance of the process change.
True
False
Find the proceeds of a $5000 7-year note bearing interest at 8% compounded quarterly discounted 2½ years after the date of issue at 6% compounded monthly.
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