Question: A bank has recently taken over the billing function of
A bank has recently taken over the billing function of a company. An agreement stipulates that the bank should process 99.2% of the bills within 4 hours. A study of the current process indicates that the processing time averages 2.2 hours per bill with a standard deviation of 0.8. A process improvement team has suggested a change. Experiments indicate that the change will lower the average processing time to 2 hours but raise the standard deviation to 1.2. Should this change be implemented? Why?
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