When using the statistical control chart to investigate variances
A) managers should only investigate variances that are beyond the critical value.
B) managers should only investigate variances that are fall below the critical value over a number of consecutive periods.
C) any variances that go beyond the critical values are likely to be the result of random events such as employee illness.
D) managers should estimate the critical values by averaging the variances over a number of periods.

Question

Quizplus · Accepted Answer

The statistical control chart is used to identify variances that are beyond the established control limits or critical value. These variances indicate that the process has gone out of control and requires investigation by managers. Therefore, managers should only investigate variances that fall outside the critical value.

When Using the Statistical Control Chart to Investigate Variances