Quality Control Chart

DEFINITION of 'Quality Control Chart'

A graphic that depicts whether sampled products or processes are meeting their intended specifications and, if not, the degree by which they vary from those specifications. Analyzing the pattern of variance depicted by a quality control chart can help determine if defects are occurring randomly or systematically.

BREAKING DOWN 'Quality Control Chart'

Different types of quality control charts, such as X-bar charts, S charts and Np charts are used depending on the type of data that needs to be analyzed. A quality control chart can also be univariate or multivariate, meaning that it can show whether a product or process deviates from one or from more than one desired result.

RELATED TERMS
  1. Acceptance Sampling

    A statistical measure used in quality control. A company cannot ...
  2. Quality Management

    The act of overseeing all activities and tasks needed to maintain ...
  3. Chart Formation

    A graphical depiction of a stock's price movements over time. ...
  4. Three-Sigma Limits

    A statistical calculation that refers to data within three standard ...
  5. Detective Control

    A type of internal control mechanism intended to find problems ...
  6. Sampling

    A process used in statistical analysis in which a predetermined ...
Related Articles
  1. Trading Strategies

    Beginner's Guide To Stockcharts.com: Changing The Chart Type

    This is one of the strengths of stockcharts.com as there are all sorts of chart types available to users. Every option is available to all users, so even free members have the ability to express ...
  2. Economics

    Explaining Quality Control

    Businesses use quality control to ensure their products and services meet a certain standard, as well as any industry regulations.
  3. Trading Systems & Software

    Guide to TD Ameritrade's Thinkorswim - Charts

    Charts provide a visual depiction of the price movement of a tradable instrument. There many ways to view charts and to analyze them within thinkorswim. Three Charting Platforms There are three ...
  4. Fundamental Analysis

    Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  5. Professionals

    Career Advice: Accountant Vs. Controller

    Learn about the differences between controllers and accountants, how the two are related and which is the best career choice for aspiring bookkeepers.
  6. Charts & Patterns

    Analyzing Chart Patterns

    Learn how to evaluate a stock with a few easy-to-identify patterns.
  7. Trading Strategies

    Technical Analysis: Chart Types

    By Cory Janssen, Chad Langager and Casey MurphyThere are four main types of charts that are used by investors and traders depending on the information that they are seeking and their individual ...
  8. Trading Systems & Software

    How To Spot And Screen For Chart Patterns With Finviz: Conclusion

    Finviz is a powerful tool for finding chart patterns. Traders can create a customized list of stocks that fit a certain criteria and then can easily view those stocks in chart format. By going ...
  9. Fundamental Analysis

    Earnings Quality, the Facebook Example

    When judging Facebook's quality of earnings it is important to understand the various sources of revenue and trends in those sources.
  10. Investing Basics

    Calculating Portfolio Variance

    Portfolio variance is a measure of a portfolio’s volatility, and is a function of two variables.
RELATED FAQS
  1. When is it better to use systematic over simple random sampling?

    Learn when systematic sampling is better than simple random sampling, such as in the absence of data patterns and when there ... Read Answer >>
  2. What is the difference between systematic sampling and cluster sampling?

    Learn about the differences between systematic sampling and cluster sampling, including how the samples are created for each ... Read Answer >>
  3. Is variance good or bad for stock investors?

    Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >>
  4. What's the difference between a representative sample and a random sample?

    Explore the differences between representative samples and random samples, and discover how they are often used in tandem ... Read Answer >>
  5. What is the difference between standard deviation and variance?

    Understand the difference between standard deviation and variance; learn how each is calculated and how these concepts are ... Read Answer >>
  6. How can I use systematic sampling in finance?

    Learn about systematic sampling, how it works and how it can be used in finance, including Monte Carlo simulations that model ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center