A metal fabricator produces connecting rods with an outer diameter that has a 1 ± 0.02 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.005 inches with a standard deviation of 0.003 inches.
a. calculate the process capability index for this example.

An economist's measurement of profit differs from an accountant's in that accountants do not always include all of the opportunity costs when calculating total production costs. When the economist are trying to determine opportunity costs they account for all of production costs. Accounts won't always account for them and their affects on the business statements.