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

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


Related Solutions

You are reviewing the company’s working capital investment for the past three years.(17 marks) 2014 2015...
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
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT