QUESTION 3Statistical Decision Making and Quality Control Show all calculations/reasoning Guide to marks: 20 marks – (a) 3 each for 1,2, and 3, 1 for conclusion, (b) 10 A company wishes to set...

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Answered Same DayDec 26, 2021

Answer To: QUESTION 3Statistical Decision Making and Quality Control Show all calculations/reasoning Guide to...

David answered on Dec 26 2021
128 Votes
A company wishes to set control limits for monitoring the direct labour time to produce an
importa
nt product. Over the past the mean time has been 20 hours with a standard deviation of 10
hours and is believed to be normally distributed. The company proposes to collect random samples
of 64 observations to monitor labour time.
Q: -If management wishes to establish ̅ control limits covering the 95% confidence interval,
calculate the appropriate UCL and LCL.
Sol: -
̅












LCL = 17.55 and UCL = 22.45
Q: -If management wishes to use smaller samples of 16 observations calculate the control limits
covering the 95% confidence interval.
Sol: -
̅












LCL = 15.1 and UCL = 24.9
Q:- Management is considering three alternative procedures...
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