##### Question

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.

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

## Solutions

##### Expert Solution

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

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