A process is under control and follows a normal distribution with mean 100 and standard deviation 10.

Question:

A process is under control and follows a normal distribution with mean 100 and standard deviation 10. In constructing a standard x̅-chart for this process, the control limits are set 3 standard deviations from the mean-that is, 100 ± 3(10/ √n). The probability of observing an x outside the control limits is (.00135 + .00135) = .0027.
Suppose it is desired to construct a control chart that signals the presence of a potential special cause of variation for less extreme values of x. How many standard deviations from the mean should the control limits be set such that the probability of the chart falsely indicating the presence of a special cause of variation is .10 rather than .0027?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

Question Posted: