1. The time taken for guests to check out at a hotel front desk was measured over the course of several weeks. The management believes that the target time for checking out guests should be between 2 and 3 minutes with a target of 2.5 minutes. The data gathered for the actual process had a mean time of 2.75 minutes with a standard deviation of 0.45 minutes. The process capability index will be:

a. more than 4 but less than or equal to 5.

b. more than 3 but less than or equal to 5.

c. more than 5.

d. less than or equal to 1.

2. The managers at Blyrie Corp. think that their company's products are of higher quality than the products of other companies in the market. However, contrary to their perception, the customers rate the company's products as below average. This is due to the inferior process design specifications in the company. This is an example of _____ in the GAP model.

a. Gap 2

b. Gap 3

c. Gap 5

d. Gap 4

3. Which of the following is an example of a project that belongs to the functional area of accounting and finance?

a. Installing a revenue management system

b. Planning a firm's initial public offering

c. Annual performance and compensation review

d. Market research study

4. Which of the following is true of control charts?

a. The use of small sample sizes in control charts increases the chances that a process may have changed during the sampling interval.

b. Conventional statistical process control charts have the lowest frequency of false alarms.

c. Control charts can only be used for processes that have a very high sigma level.

d. Standard control charts are not effective when the rate of defects is extremely low.