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Case

Quality Associates advises clients on statistical quality control procedures. A client provided a sample of 800 observations when its process was operating satisfactorily, with a standard deviation of 0.21. Quality Associates suggested the client take periodic samples of 30 to monitor the process mean of 12. Corrective action would be taken if samples reject the null hypothesis that the mean is 12. Four initial hourly samples are provided to test at a 0.01 significance level and calculate control limits.

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20 views1 page

Case

Quality Associates advises clients on statistical quality control procedures. A client provided a sample of 800 observations when its process was operating satisfactorily, with a standard deviation of 0.21. Quality Associates suggested the client take periodic samples of 30 to monitor the process mean of 12. Corrective action would be taken if samples reject the null hypothesis that the mean is 12. Four initial hourly samples are provided to test at a 0.01 significance level and calculate control limits.

Uploaded by

Poornima Devi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case-I

Quality Associates, Inc., a consulting firm, advises its clients about sampling and statistical
procedures that can be used to control their manufacturing processes. In one particular
application, a client gave Quality Associates a sample of 800 observations taken during a time
in which that client’s process was operating satisfactorily. The sample standard deviation for
these data was .21; hence, with so much data, the population standard deviation was assumed
to be .21. Quality Associates then suggested that random samples of size 30 be taken
periodically to monitor the process on an ongoing basis. By analyzing the new samples, the
client could quickly learn whether the process was operating satisfactorily. When the process
was not operating satisfactorily, corrective action could be taken to eliminate the problem.
The design specification indicated the mean for the process should be 12. The hypothesis test
suggested by Quality Associates follows:

H0: μ = 12

Ha: μ ≠ 12

Corrective action will be taken any time H0 is rejected.

The following samples were collected at hourly intervals during the first day of operation of
the new statistical process control procedure. These data are available in the data set Quality.

1. Conduct a hypothesis test for each sample at the .01 level of significance and determine
what action, if any, should be taken. Provide the test statistic and p-value for each test. 2.
Compute the standard deviation for each of the four samples. Does the assumption of .21
for the population standard deviation appear reasonable?
3. Compute limits for the sample mean around such that, as long as a new sample mean is
within those limits, the process will be considered to be operating satisfactorily. If
exceeds the upper limit or if is below the lower limit, corrective action will be taken.
These limits are referred to as upper and lower control limits for quality control
purposes.
4. Discuss the implications of changing the level of significance to a larger value. What
mistake or error could increase if the level of significance is increased?

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