If the control limits in statistical quality control are set at two standard deviations above and below the mean,
A. The cause of the errors that exceed the number allowable for the control limits is due to chance.
B. The cause of errors that exceed the number allowable for the control limits can be attributed to some factor other than chance.
C. Employee fatigue is the reason for errors exceeding the control limits.
D. All errors fall within the control limits.
B
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Margin of safety is the excess of actual sales over break even sales
Indicate whether the statement is true or false
"Karen, we must jump into this new business area now, or we will fall behind," argued Steven. "Let's price our product well below our competitors' prices, even if we don't make money at first. We will figure out how to make money later." Steven is displaying
A. illusion of control. B. bargaining. C. discounting the future. D. framing effects. E. benchmarking.
Stock A has a beta of 1.2 and a standard deviation of returns of 14%. Stock B has a beta of 1.8 and a
standard deviation of returns of 18%. If the risk-free rate of return increases and the market risk premium remains constant, then A) the required returns on stocks A and B will both increase by the same amount. B) the required return on stock B will increase more than the required return on stock A. C) the required return on stock A will increase more than the required return on stock B. D) the required returns on stocks A and B will not change.
An interest rate that adjusts to current market conditions is called a(n) ________
A) floating rate B) fixed rate C) notional rate D) arbitrage rate