1. The range chart is most likely to detect a change in:

a. proportion.
b. mean
c. number defective.
d. variability.
e. sample size.

2. The optimum level of inspection is where the:

a. cost of inspection is minimum.
b. cost of passing defectives is minimum.
c. total cost of inspection and defectives is maximum.
d. total cost of inspection and defectives is minimum.
e. difference in inspection and defectives costs is minimum.

3. The purpose of control charts is to:

a. estimate the proportion output that is acceptable.
b. weed out defective items.
c. determine if the output is within tolerances/specifications.
d. distinguish between random variation and assignable variation in the process.
e. none of these.

4. Which of the following is not a key way in which business organizations compete with one another?

a. production cost.
b. quality
c. product duplication.
d. flexibility
e. time to perform certain activities.

5. The research and development activity which converts research results into useful commercial applications is:

a. basic research.
b. applied research.
c. development.
d. redesign.
e. commercial research.