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Exam ICBB topic 1 question 55 discussion

Actual exam question from Six Sigma's ICBB
Question #: 55
Topic #: 1
[All ICBB Questions]

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belts effort requiring that the average cost of an internal critical raw material component be less than or equal to $3,800 in order to stay within budget. Using a sample of 38 first article components, a Mean of the new product upgrade price of $3,680, and a Standard Deviation of $120 was estimated. In order to increase the Long Term Z value to 5, what is the maximum long term variation in pricing the Belt can accept for his upgraded critical raw material component?

  • A. $6
  • B. $12
  • C. $24
  • D. $48
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Suggested Answer: C 🗳️


Chosen Answer:
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7 months, 1 week ago
Reaarange the formula. sigma=x- population mean/z
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