Assignment task: Capability
A bank tracks the amount of money lost each day due to fraudulent charges on its credit cards. The bank expects daily losses of $5000, but anywhere between $2000 and $8000 is considered normal. Last month the actual amount lost per day had an average of $5244 and a standard deviation of $317.
Which one of the following statements best describes the capability of this process with respect to Cpm and Cp?
Question options:
- It is capable on good days, and capable on typical days.
- It is capable on good days, but not capable on typical days.
- It is not capable on good days, but is capable on typical days.
- It is not capable on good days, and not capable on typical days.
Please explain how to choose good days and typical days.