In: Statistics and Probability

You are working for an investment firm that focuses their efforts on investing with a goal of providing income for aged peoples throughout their final years. Every financial product that you sell has a minimum acceptable interest rate of return, but obviously no maximum acceptable value, as the goal is to maximize the return for your customers as much as possible.

To determine if the process by which you are selecting the financial products is doing a capable job or not, which value would you examine since "larger is better" is your firm's motto when it comes to the rates of return you secure for your clients?

Сpl

Cp

Cpu

Cpk

**Answer : Cpl**

Rate of return: as the more the better;

As indicated has no upper specification Limit : USL

LSL: minimum acceptable rate of return

a target rate of return :Process Mean

Cpl formula

Cpu formula

As USL is not relevant for this problem and hence Cpu is not
relevant, therfore; *Cpl you would
examine*

cpk = minimum(Cpl,Cpu)

Cp formula

You are reviewing the company’s working capital investment for
the past three years.
2014
2015
2016
2017
sales
1285000
1544000
1850000
2405000
Cost of sales
579000
803000
1019500
1445000
inventory
68000
83650
97750
118800
debtors
158750
198500
253010
349900
creditors
58700
91100
125690
198068
Calculate and comment on the cash conversion cycle for
2015,2016,2017

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