Final answer:
The false statement is E, which claims that out-of-control points on a control chart always indicate bad business situations. This is not necessarily true as these points can result from various factors, not all of which signify negative circumstances.
Step-by-step explanation:
Analysis of the False Statement
The statement that is false among the provided options is E: "Out of control points on a control chart always indicate bad business situations." While out of control points can suggest potential issues with the process, they do not always indicate bad business situations. There can be instances where these points signify a positive change in the process, such as an improvement in quality or efficiency. Similarly, they could also result from factors unrelated to the business process quality, such as a change in measurement systems or a singular event that temporarily affected the process.
It's crucial to investigate the cause of out-of-control points before making judgments about the business's situation. Other statements are generally true, given the context of hypothesis testing and process capability analysis in business operations.