What ensures that a company is complying with the documented quality management systemQMS: procedures and ISO 9000 standards?
Answer(s): A
An important requirement of the ISO 9000 standards is the internal audit system. Internal audits assure that the company is complying with the documented QMS procedures and ISO 9000 standards.
Which of the following is a major element of the ISO 9000:2008 quality management system standards?
Answer(s): D
ISO 9001:2008, Quality Management Systems-- Requirements s, is the standard that provides a model for quality assurance programs. Organizations are required to monitor information on customer satisfaction as a measure of performance.
What coefficient of correlation results from the following data?
Answer(s): B
The coefficient of correlation in standard notation, r) measures the strength of the linear relationship. The magnitude of r is independent of the scales of measurement of and Y. Its range is -1 .0 to 1 .0. A value of -1 .0 indicates a perfectly inverse linear relationship between and Y. A value of zero indicates no linear relationship between and Y. A value of +1 .0 indicates a perfectly direct relationship between and Y. As increases by 1, consistently decreases by 2. Hence, a perfectly inverse relationship exists, and r must be equal to 1 .0.
In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent variables?
Answer(s): C
Because the range of values is between -1.0 and 1_0, -.89 suggests a very strong inverse relationship between the independent and dependent variables. A value of -1.0 signifies a perfect inverse relationship, and a value of 1.0 signifies a perfect direct relationship.
The internal auditor of a bank has developed a multiple regression model which has been used for a number of gears to estimate the amount of interest income from commercial loans.During the current year, the auditor applies the model and discovers that the r2 value has decreased dramatically, but the model otherwise seems to be working okay.Which of the following conclusions is justified by the change?
The coefficient of determination r-) is the amount of variation in the dependent variable interest income) that is explained by the independent variables. In this case, less of the change in interest income is explained by the model. Thus, some other factor must be causing interest income to change. This change merits audit investigation. In preparing the annual profit plan for the coming year, Wilkens Company wants to determine the cost behavior pattern of the maintenance costs. Wilkens has decided to use linear regression by employing the equation = a + bx for maintenance costs. The prior year's data regarding maintenance hours and costs, and the results of the regression analysis, are given below and in the opposite column.
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