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As part of an insurance companys training program, participants learn how to conduct an analysis of clients insurability. T
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Answer #1

CPK = MINIMUM((UPPER SPECIFICATION - MEAN) / 3 * STANDARD DEVIATION), (MEAN - LOWER SPECIFICATION) / 3 * STANDARD DEVIATION)
CP = (UPPER SPECIFICATION - LOWER SPECIFICATION) / (6 * STANDARD DEVIATION)

UPPER SPECIFICATION = 45
LOWER SPECIFICATION = 32

ARMAND

MEAN = 39
STDEV = 3

CPK = MIN((45 - 39) / (3 * 3), (39 - 32) / (3 * 3)) = MIN(0.67, 0.78) = 0.67
CP = (45 - 32) / (6 * 3) = 0.72

NO

JERRY

MEAN = 35
STDEV = 2

CPK = MIN((45 - 35) / (3 * 2), (35 - 32) / (3 * 2)) MIN(1.67, 1) = 0.5
CP = (45 - 32) / (6 * 2) = 1.08

YES, 3 SIGMA CAPABLE

MELLISA

STDEV = 3

CPK = MIN((45 - 38.5) / (3 * 3), (38.5 - 32) / (3 * 3)) = MIN(0.72, 1) = 0.72
CP = (45 - 32) / (6 * 3) = 0.72

NO


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