Final answer:
In answer to the student's question, too many observations on one side of the center line on a run chart indicate a 'level shift,' which is a sudden change in the data level.
Step-by-step explanation:
When a run chart reflects too many observations on one side of the center line, it is an indication of a non-random pattern. These patterns can denote various changes or shifts in the data being analyzed. The correct answer to the student's question is E) level shift. A level shift refers to a sudden change in the data level, contrasting with normal fluctuations or random noise within the data. This could be a result of a process change, or an external factor affecting the measurements.