Question: 17.26 Estimating the control chart limits from past data. TABLE 17.8 gives data on the losses (in dollars) incurred by a hospital in treating DRG

17.26 Estimating the control chart limits from past data. TABLE 17.8 gives data on the losses (in dollars) incurred by a hospital in treating DRG 209 (major joint replacement) patients. The hospital has taken from its records a random sample of eight such patients each month for 15 months.

a. Make an s control chart using center lines and limits calculated from these past data. There are no points out of control.

b. Because the s chart is in control, base the x¯ chart on all 15 samples. Make this chart. Is it also in control?

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