In an effort to reduce customer dissatisfaction with delays in replacing lost automated teller machine (ATM) cards,

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In an effort to reduce customer dissatisfaction with delays in replacing lost automated teller machine (ATM) cards, some retail banks monitor the time required to replace a lost ATM card. Called replacement cycle time, it is the elapsed time from when the customer contacts the bank about the loss until the customer receives a new card (Management Science, Sept. 1999). A particular retail bank monitors replacement cycle time for the first five requests each week for replacement cards. Variation in cycle times is monitored using an R-chart. Data for 20 weeks are presented below.
Week Replacement Cycle Time (in days) 으6627776584828괴7D9N7 rnoorgonors w8183 60680 088이

a. Construct an R-chart for these data.
b. What does the R-chart suggest about the presence of special causes of variation in the process?
c. Should the control limits of your R-chart be used to monitor future replacement cycle times? Explain.
d. Given your conclusion in part b and the pattern displayed on the R-chart, discuss the possible future impact on the performance of the bank.

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

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

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