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Chapter: 11 -Problem: 8 >> A remote control unit has 40 components in series. The reliability of each component is 0.9994. What is the reliability of the remote control unit? If a redesign has 25 components in series, what is the reliability of the unit?
Answer Preview: Reliability of component in series Each component has rel…

, Chapter: 10 -Problem: 32 >> Refer to Exercise 10-30. What is the average sample number of incoming lots that are 2% nonconforming? What is the average total inspection for this quality level of 2% nonconforming? Exercise 10-30Consider a double sampling plan given by the following parameters: N = 1200, n1 = 50, c1 = 1, r1 = 4, n2 = 110, c2 = 5, r2 = 6. Find the probability of accepting lots that are 4% nonconforming. What is
Answer Preview: P(CI=c1) = 1 0 04 1 4 = 63% P(CI=c2) = 1 0 05 2 4 = 75% P(CI=r1)= 1 0 02 4 = 125% P(CI=r2)= 1 0 05 6 …

, Chapter: 7 -Problem: 51 >> Refer to Exercise 7-49. Construct an exponentially weighted moving-average chart using a weighting constant of 0.2 for the weekly amount invested. Comment on the process. If it is desired to have a goal value of $1.5M for the standard deviation, using the constructed chart, comment on the ability of the process to achieve this goal. Exercise 7-49An investment bank is interested in monitoring the w
Answer Preview: An exponentially weighted moving-average (EWMA) chart is a control chart that is used to monitor the …

, Chapter: 13 -Problem: 7 >> A health care facility is exploring the relationship between annual costs based on the number of patients seen and the number of emergency cases. Explain what an outlier means in this context. How would you statistically test for the presence of an outlier?In this context, what do you do if you find some outliers?What would an influential observation be in this context?How would you test for the p
Answer Preview: A health care facility is exploring the relationship between annual costs based on the number of patients seen and the number of emergency cases. Expl…

, Chapter: 11 -Problem: 6 >> An electronic component in a video recorder has an exponential time-to-failure distribution. What is the minimum mean time to failure of the component if it is to have a probability of 0.92 of successful operation after 6000 hours of operation?
Answer Preview: given t=6000hrs p(success)=0 92 from an exponential di…

, Chapter: 3 -Problem: 21 >> Consider a visit to your local physician’s office for a routine procedure. Develop a flow chart for the process. What methods could be implemented to improve your satisfaction and reduce waiting time?
Answer Preview: 10 Steps To Streamline Work Process And Improve Workflow …

, Chapter: 13 -Problem: 2 >> Refer to Exercise 13-1. What null hypothesis would you test to determine if contract cost is significant in the presence of the other independent variables? What null hypothesis would you test to determine if the number of projects undertaken could be dropped from the model? Exercise 13-1An information technology company that specializes in website development is interested in modeling development
Answer Preview: Solution; An important question that must be considered is whether the dependent variable, developme…

, Chapter: 3 -Problem: 28 >> Discuss the challenges and the contributions that could be derived from the development of a healthcare decision support system in the current century.
Answer Preview: There are many challenges that come with developing a healthcare decision support system . One chall…

, Chapter: 13 -Problem: 5 >> A financial institution wants to explore the relationship between a loan application approval time and the independent variables of the annual salary of the applicant and years of employment. What is the equation of a regression model? In order to satisfy governmental regulations, the institution wishes to determine if gender has an impact on approval time. What is the model now? What hypothesis w
Answer Preview: A financial institution wants to explore the relationship between a loan application approval time a…

, Chapter: 3 -Problem: 15 >> What is the purpose of vendor certification? Describe typical phases of certification.
Answer Preview: VENDOR CERTIFICATION: Definition: * Vendor certification is a supplier-customer partnership, and can only be successful with the full involvementement of both partners. OR * It is the combination of a…

, Chapter: 11 -Problem: 7 >> An optical sensor has a Weibull time-to-failure distribution with a scale parameter of 300 hours and a shape parameter of 0.5. What is the reliability of the sensor after 500 hours of operation? Find the meantime to failure.
Answer Preview: Data : Scale parameter = 300 hr Shape parameter = 0 5 reliability function for weibull …

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, Chapter: 7 -Problem: 46 >> The time to evaluate and make a decision on mortgage loan applications is being examined in a financial institution. Twenty-five mortgage applications are selected from the previous month and the decision-making times, in days, are shown in Table 7-30. Construct an appropriate control chart and comment on the timeliness of the decision-making process. Revise the chart, if necessary, assuming speci
Answer Preview: To construct a control chart, we need to follow the following steps: Step 1: Calculate the average …

, Chapter: 7 -Problem: 52 >> The predicted mortality of cardiac surgery patients in an intensive care unit, based on their APACHE score, is found based on a logistic regression model applied to patients over a four-year period. Table 7-32 shows the predictive pre-operative mortality for 25 recent patients, along with the observed outcome after surgery, where a value of 0 indicates that the patient survived while a value of 1
Answer Preview: Solution; To determine the right-hand axis vertical axis values, we first use the …

, Chapter: 13 -Problem: 15 >> Refer to the data in Table 13-6 on obesity, gender, and occurrence of a heart attack.(a) Develop a regression model to predict the chance of a heart attack based on weight. Interpret the model coefficients.(b) Is the model significant using ? = 0.05?(c) Find a 95% confidence interval for the mean probability of a heart attack for individuals who weigh 90 kg.
Answer Preview: Solution; a) Quadratic model: Y = 5 53369 + 0 17223X 0 00287X2 X is a vector of independent variables, such as age, gender, education, etc. Y is the dependent variable …

, Chapter: 6 -Problem: 12 >> Explain some causes that would make the control chart pattern follow a gradually increasing trend.
Answer Preview: A Control Chart Indicates a Process is Out of Control When: Six consecutive points, i…

, Chapter: 8 -Problem: 33 >> Refer to Exercise 8-32. If the weighting systems were different (i.e., 10, 5, and 1), how would the centerline and the control limits change for the U-chart? Discuss changes, if any, in the inferences made about the process. Exercise 8-32Nonconformities in automobiles fall into three categories: serious, major, and minor. Twenty-five samples of five automobiles are chosen, and the total number of
Answer Preview: Solution; The centerline and control limits are shown in Figure 8-33. No…

, Chapter: 6 -Problem: 21 >> The turnaround time (TAT) for a certain blood test in a laboratory in a health care facility is of interest. The mean and standard deviation of a random sample of 100 such tests are found to be 120 minutes and 20 minutes, respectively. Find the 3? control limits for the individual turnaround test time. What are the warning limits? If the turnaround time for a test is found to be 40 minutes, is the
Answer Preview: If the slit separation …

, Chapter: 5 -Problem: 8 >> Explain why it is important to obtain feedback from customers on both perceived satisfaction and the importance of specified survey items. Transcribed Image Text: 33.2 29.4 36.5 38.1 30.0 29.1 32.2 29.5 36.0 31.5 34.5 33.6 27.4 30.4 28.4 32.6 30.4 31.8 29.8 34.6 30.7 31.9 32.3 28.2 27.5 34.9 32.8 27
Answer Preview: It is important to obtain feedback from customers on both perceived satisfaction and the importance …

, Chapter: 6 -Problem: 11 >> What are some reasons for a process to go out of control due to a sudden shift in the level?
Answer Preview: There is only common cause of variation present - the …

, Chapter: 2 -Problem: 21 >> In the context of a healthcare organization, explain why it is important to know not only the needs of the customers but also their relative importance.
Answer Preview: It is important to understand not only the needs of healthcare customers but also t…

, Chapter: 7 -Problem: 37 >> The time from product inception and design to marketing and sales is important for application software on mobile devices. For the last 20 products, Table 7-26 shows such times (in weeks) for a software organization. Construct an appropriate control chart and comment on the organization’s responsiveness to market needs. Tr
Answer Preview: The control chart is…

, Chapter: 13 -Problem: 12 >> Refer to the data in Table 13-8 on order fulfillment time.Table 13-8You decide to develop a regression model using order value and the number of products in the order as predictors. Find the model equation. Is it significant at = 0.05?Find R2 and R2a and comment relative to the model in Exercise 13-9.Is the predictor, number of products, significant in the presence of the other predictor? Test usi
Answer Preview: Answer: The model equation is y = 0 0029x1 + 0 0018x2, wher…

, Chapter: 8 -Problem: 41 >> Consider Exercise 8-38. Determine the sensitivity of the control limits on the complication rate using values of 0.2% and 0.5%.Exercise 8-38A building contractor subcontracts to a local merchant a job involving hanging wallpaper. To have an idea of the quality level of the merchant’s work, the contractor randomly selects 300 m2 and counts the number of blemishes. The total number of blemishes for
Answer Preview: To determine the sensitivity of the control limits on the complication rate using values of 0 2% and 0 5%, we first need to calculate the control limi…

, Chapter: 11 -Problem: 32 >> Refer to Exercise 11-31. Test the null hypothesis of equality of the survival functions of the two groups using a level of significance of 0.05. Exercise 11-31Two groups of samples of patients were randomly selected from a county. The first group (Group 1) had no history of chronic disease while the second group (Group 2) had a positive history. The selected patients were observed for a period of
Answer Preview: Solution; From Table 11-12, the duration of survival for patients in Group 1 are: Tabl…

, Chapter: 5 -Problem: 19 >> Consider Table 5-15 on the summary of patient satisfaction ratings. The percentages in each rating category are based on a response from a total of 200 patients from a prior year. For the item waiting time prior to being seen by a physician, consider the combined proportion of patients who are satisfied, that is, includes those in the category of very satisfied or satisfied. Suppose that, based on
Answer Preview: To determine if there has been an increase in the overall proportion of satisfied patients from a pr…

, Chapter: 2 -Problem: 20 >> Customer satisfaction is of importance to management. Discuss customer needs in the context of internet service providers(ISPs) and their degree of importance.
Answer Preview: Customer satisfaction is important because it means your customer base likes what you're doing . Re…

, Chapter: 3 -Problem: 24 >> Consider Exercise3-23. Suppose, through a quality improvement effort, that the first-pass yield of each operation is improved to 98%. What is the percentage improvement in rolled throughput yield?Exercise3-23A product goes through 20 independent operations. For each operation, the first pass yield is 95%. What is the rolled throughput yield for the process?
Answer Preview: The rolled throughput yield (RTY) for a process is the product of the first-pass yields for each ope…

, Chapter: 12 -Problem: 26 >> Refer to Exercise 12-19. Find a 90% confidence interval for the difference in the mean effectiveness of program 1 and the average of that using programs 2 and 3. Exercise 12-19Three training programs are being considered for auditors in an accounting firm. The success of the training programs is measured on a rating scale from 0 to 100, with higher values indicating a desirable program. The compan
Answer Preview: (a) The null hypothesis is that there is no difference in the mean evaluation scores of the training programs. The alternative hypothesis is that ther…

, Chapter: 5 -Problem: 16 >> Refer to Table 5-7 and the patient satisfaction survey form with 22 items. Patients were asked to rate their perceived level of satisfaction on a five-point ordinal Likert scale as shown. Additionally, patients were asked to rate the importance of each item on a five-point ordinal Likert scale, using a rating of 1 to indicate “not important at all” to a rating of 5 indicating “very important.” The
Answer Preview: The patient satisfaction and importance of each item were done on a Likert scale and the 5 score indicate the most imporatnace and most satisfied .In …

, Chapter: 5 -Problem: 20 >> Summary data on ratings of patient satisfaction and importance for the survey item “waiting time prior to being seen by a physician” is shown in Table 5-16 for a total of 400 patients. Perceived satisfaction was rated on a Likert scale from 1 to 5, while importance was also rated on a Likert scale from 1 to 5 using the nomenclature discussed in the chapter. Determine if the categorical variables “
Answer Preview: The null hypothesis for this test is that the categorical variables satisfaction rating and importan…

, Chapter: 13 -Problem: 9 >> A retail company has information on the time taken (in days) to fulfill an order, the value of the order (in $10,000), the number of different types of products in the order, and the store location. The data are shown in Tables 13-8.Table in 13.8Find a simple regression model that predicts the time to fulfill an order based on the value of the order. Interpret the estimated model coefficients.What
Answer Preview: A retail company has information on the time taken (in days) to fulfill an order, the value of the order (in $10,000), the number of different types of products in the order, and the store location. T…

, Chapter: 13 -Problem: 1 >> An information technology company that specializes in website development is interested in modeling development time as a function of the contract cost, number of available developers, and number of projects undertaken.(a) Write down the equation of the model and explain the meaning of the model parameters in the context of the problem.(b) What signs do you expect of the model parameters? Explain.
Answer Preview: a. The equation of the model is a quadratic in development time: = 0 00407 (cost) + 0 00146 (number of developers) + 0 00128 (number of projects) 0 08…

, Chapter: 7 -Problem: 48 >> Refer to Exercise 7-46. Construct an exponentially weighted moving-average chart using a weighting constant of 0.2 for the decision-making process and comment. Is the existing process capable of meeting a goal value of 12 weeks? Exercise 7-46The time to evaluate and make a decision on mortgage loan applications is being examined in a financial institution. Twenty-five mortgage applications are sel
Answer Preview: To construct an exponentially weighted moving-average chart, we first calcula…

, Chapter: 1 -Problem: 8 >> Classify each of the following into the cost categories of prevention, appraisal, internal failure and external failure:(a) Vendor selection (b) Administrative salaries (c) Downgraded product (d) Setup for inspection (e) Supplier control (f) Externalcertification (g) Gagecalibration (h) Processaudit
Answer Preview: This was true when he first said it many years ago & its even more …

, Chapter: 8 -Problem: 50 >> The marketing department of a large organization is interested in being responsive to its customers’ needs. Accordingly, each week it monitors the number of complaints Transcribed Image Text: TABLE 8-38 Passenger Satisfaction Survey in Airline Number Checking "Outstanding" or Number Checking "Outsta
Answer Preview: here are 5 marketing management orientations are production concept, product concept, sales concept, marketing concept and social marketing concept. P…

, Chapter: 5 -Problem: 3 >> Data from a survey of customers are on an ordinal scale (1–7) regarding satisfaction with the services provided in a bank by three tellers. If we wish to determine if the degree of customer satisfaction is independent of the teller, what statistical test should be used?
Answer Preview: The Chi-square test of independence is a statistical hypothesis test used to d…

, Chapter: 3 -Problem: 23 >> A product goes through 20 independent operations. For each operation, the first pass yield is 95%. What is the rolled throughput yield for the process?
Answer Preview: The formula for rolled throughput yield is to multiple the passing rate of a…

, Chapter: 13 -Problem: 6 >> A marketing company wants to determine if the combined years of experience of its staff who worked on a proposal have an impact on the chance of winning a contract. What is the equation of an appropriate model?
Answer Preview: Given Information: Population mean (u) = 27 Sample size (n) = 13 The claim can be test…

, Chapter: 8 -Problem: 45 >> Mortality data for patients in the intensive care unit (ICU) in a health care facility, collected over 8-hour intervals, are shown in Table 8-34. Since patients have varying risks, the predicted mortality from a logistic regression model that uses the patient’s APACHE score (severity of disease) is also shown. Construct a risk-adjusted chart for the mortality proportion and comment on the ICU perf
Answer Preview: A risk-adjusted chart is a graphical representation of the mortality proportion, or the percentage o…

, Chapter: 3 -Problem: 32 >> Use a flow chart to develop an advertising campaign for a new product that you will present to top management.
Answer Preview: Select Messaging in the side menu of your Postscript dash…

, Chapter: 5 -Problem: 26 >> Management is exploring the possibility of adding more agents at the check-in counter of an airline to reduce the waiting time of customers. Based on available information, the standard deviation of the waiting times is approximately 5.2 minutes. If manage­ ment wants to estimate the mean waiting time to within 2 minutes, with a probability of 0.95, how many samples must be selected?
Answer Preview: The sample size can be calculated using the formula: n = (2*z*/e)2 where z = z-sc…

, Chapter: 5 -Problem: 7 >> A fast-food restaurant in an urban area experiences a higher traffic rate during the early morning and lunch hours. In order to conduct a customer satisfaction survey, discuss possible sampling procedures.
Answer Preview: To conduct a customer satisfaction survey at a fast-food restauran…

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, Chapter: 5 -Problem: 4 >> A financial institution is contemplating the offering of three different types of savings accounts. It selects 100 customers randomly and obtains a response on which account each person would select. What statistical test would you use to determine if customers have a preference for any account?
Answer Preview: Preference testing is a research method that involves sharing 2-3 design variants with part…

, Chapter: 8 -Problem: 48 >> An organization that accepts orders via the Web processes it, and has delivery scheduled based on its inventory levels is known to be proficient in its service. Errors in orders received could be due to the wrong shipment of product, incorrect quantity, or not meeting promised delivery date. Given the track record of the organization, Table 8-37 shows the number of error-free orders filled between
Answer Preview: To construct an appropriate control chart for the data in Table 8-37 and analyze the performance of the organization, we can use the following steps: …

, Chapter: 13 -Problem: 17 >> Refer to the data in Table 13-9 on diabetic patients and the development of retinopathy. (a) Develop a regression model to predict the probability of development of retinopathy based on years of diabetes and gender of the person. Is the model significant at ? = 0.05?(b) Is the model developed in part (a) better than that developed in Exercise 13-16? Comment.(c) Interpret the odds ratio associated
Answer Preview: Answer: a) The regression model to predict the probability of developing retinopathy based on years …

, Chapter: 11 -Problem: 31 >> Two groups of samples of patients were randomly selected from a county. The first group (Group 1) had no history of chronic disease while the second group (Group 2) had a positive history. The selected patients were observed for a period of 15 years. Some patients had to leave the study due to relocation or other reasons while some survived the total observation period. The censored survival times
Answer Preview: From Table 11-12, duration of survival for patients in Group 1 are: Table 11-12 The f…

, Chapter: 9 -Problem: 6 >> Compare the capability indices Cpk, Cpm, and Cpmk and discuss what they measure in the process. When would you use Cpq?
Answer Preview: The capability indices measure variation in a process. If the process is capable and stable, variati…

, Chapter: 13 -Problem: 8 >> You are interested in developing a regression model to predict monthly sales of a departmental store. Discuss the independent variables that you might select. How would you select the functional form for these independent variables?
Answer Preview: You are interested in developing a regression model to predict monthly sales of a departmental store…

, Chapter: 11 -Problem: 28 >> Refer to Exercise 11-27. Find the appropriate plan using Handbook H-108 if failed items are not replaced during the test. Exercise 11-27A time-terminated life testing plan is desired that will accept lots with a mean life of 6000 hours with a probability of 0.99 and will accept lots with a mean life of 2000 hours with a probability of 0.10. The test should be terminated by 1200 hours. Items that f
Answer Preview: The probability of acceptance is calculated as follows: (Probability of acceptance per sample) (numb…

, Chapter: 3 -Problem: 26 >> Discuss the importance of health care analytics and its possible contributions.
Answer Preview: Importance of data analytics in healthcare Employi…

, Chapter: 5 -Problem: 2 >> A county wishes to estimate the average income of people, where it is known that income levels vary quite a bit among the residents in sections of the county. What type of sampling scheme should be used?
Answer Preview: There are four main types of probability sample. Simple random sampling. …

, Chapter: 2 -Problem: 10 >> Discuss the organizational structure in a typical health care facility. What barriers might this create and what are some remedial measures?
Answer Preview: A typical health care facility has a hierarchical organizational structure , with …

, Chapter: 13 -Problem: 13 >> Refer to the data in Table 13-8 on order fulfillment time.Table 13-8 You decide to develop a regression model using order value, the number of products, and the location of the retailer as predictors. Find the model equation. Is it significant at ? = 0.05?What is R2 and interpret its value relative to that in Exercise 13-12, part (b).Are all the predictors significant in the presence of others? Us
Answer Preview: Answer: The model equation is: Order Fulfillment Time = -2 28 + 0 103(Order Value) + 0 178(Number of …

, Chapter: 11 -Problem: 30 >> Refer to Exercise 11-29. If failed items are not replaced during the test, determine the plan using Handbook H-108. Exercise 11-29In a time-terminated life testing plan, it is desired to reject lots with a mean life of 1500 hours with a probability of 0.95 and reject lots with a mean life of 7500 hours with a probability of 0.10. The test is to be terminated by 2500 hours. Items that fail during t
Answer Preview: for "n" = 1 to 1500, for "m" = 1 to 2500, the mean life is found by using the formula: twice the a-v…

, Chapter: 11 -Problem: 10 >> Four components A, B, C, and D are placed in parallel to make a subassembly in a circuit board. The reliabilities of A, B, C, and D are 0.93, 0.88, 0.95, and 0.92, respectively. Find the reliability of the subassembly Transcribed Image Text: A. E F G FIGURE 11-14 System with seven components.
Answer Preview: The subassembly works when at least o…

, Chapter: 7 -Problem: 53 >> Refer to Exercise 7-52 and the data in Table 7-32 on cardiac surgery patients. Conduct a risk-adjusted sequential probability ratio test using a false-alarm rate of 0.005. Assume that the chance of failing to detect a decrease in the odds ratio of mortality from 1 to 0.6 is 0.05. Exercise 7-52The predicted mortality of cardiac surgery patients in an intensive care unit, based on their APACHE score
Answer Preview: Answer: The risk-adjusted sequential probability ratio test would involve constructing a cumulative …

, Chapter: 4 -Problem: 3 >> Find an expression for the probability of the union of three events that are mutually independent of each other.
Answer Preview: The probability of the union of any number of sets can be found as follows: Add the p…

, Chapter: 6 -Problem: 1 >> What are the benefits of using control charts?
Answer Preview: Benefits of using a control chart Control charts can help you: Und…

, Chapter: 9 -Problem: 50 >> A health care facility in a metropolitan area is interested in the efficiency of its laboratory turnaround time. Based on data collected over last year, the mean turn­ around time was found to be 55 minutes with a standard deviation of 15 minutes. The facility has set a goal value of 60 minutes. Find an upper capability index assuming normality of distribution of turnaround times. In what proporti
Answer Preview: For Americans to enjoy optimal healthas individuals and as a populationthey must have the benefit of high-quality health care services that are effect…

, Chapter: 7 -Problem: 18 >> Lung congestion may occur in illness among infants. However, it is not easily verifiable without radiography. To monitor an ill infant to predict whether lung opacity will occur on a radiograph, data are kept on age, respiration rate, heart rate, temperature, and pulse oximetry. Target values for each variable are identified. What control chart should you use in this context?
Answer Preview: The appropriate control chart to use in this context is a multi-vari chart. …

, Chapter: 4 -Problem: 59 >> The number of times a Web server is accessed per minute is known to follow a Poisson distribution. A random sample of size 8, each over a minute, shows the number of times that the server is accessed as follows: 5, 3, 2, 0, 6, 1, 1, 2. Find a 90% confidence for the mean number of times that the Web server is accessed per minute. Can we conclude that the mean number of times that the server is acce
Answer Preview: To find a 90% confidence interval for the mean number of times that the Web server is accessed per m…

, Chapter: 13 -Problem: 16 >> Table 13-9 shows data on diabetic patients and the development of retinopathy. The gender of the person, the number of years that the person has been diagnosed with diabetes (labeled as Years), and whether the person has developed retinopathy (Y = Yes; N = No) are shown in the table. (a) Fit an appropriate regression model to predict the probability of development of retinopathy based on years of
Answer Preview: Answer: (a) The appropriate regression model to predict the probability of …

, Chapter: 9 -Problem: 41 >> Refer to Exercise 9-33 on the order completion time of a logistics firm. Upon conducting a methods study of the various operations, the firm was able to reduce the mean times of operation 1 to 5.8 hours and that of operation 3 to 7.5 hours. Assume that the tolerances did not change. The customer requires an order completion time of 23.2 hours. Assuming normality, what proportion of orders will not
Answer Preview: ( a ) The natural tolerance limits are the mean plus or minus three standard deviations . For the fi…

, Chapter: 9 -Problem: 47 >> Refer to Exercise 9-42. The investment bank was able to identify a riskier strategy that projects a mean yield of 9.2% with a standard deviation of 2.4%. Assuming normality of distribution of yield rates, what is the lower capability index now if a target goal of 9% is set? In what proportion of the time will the goal be met? Would you prefer this strategy relative to the strategy in Exercise 9-42
Answer Preview: CI(8%)= 0 3 CI(9%)= 0 6 The proportion of time that the goal would have been met is: 1/0 6 = 0 167 o…

, Chapter: 9 -Problem: 14 >> For Exercise 9-13, find the Cp index. Comment on the ability of the process to meet specifications. What proportion of the specification range is used up by the process? If it is easier to change the process mean than to change its variability, to what value should the process mean be set to minimize the proportion of nonconforming products? Exercise 9-13A pharmaceutical company producing vitamin
Answer Preview: The natural tolerance limits for the process are 40 ppm and 55 ppm. This means that if the process i…

, Chapter: 7 -Problem: 47 >> Refer to Exercise 7-46. Demonstrate if the existing process in making a decision on loan applications is capable of meeting a goal value of 12 weeks. Assuming a normal distribution of the decision-making time, what proportion of the applications will not meet this goal value?Exercise 7-46The time to evaluate and make a decision on mortgage loan applications is being examined in a financial institu
Answer Preview: To determine if the existing process in making a decision on loan applications is capable of meeting …

, Chapter: 8 -Problem: 46 >> In a health care facility, it is known that nosocomial infections are rare. Table 8-35 shows the number of admissions between occurrences of nosocomial infections. Construct an appropriate control chart and comment on the performance of the health care team. Transcribed Image Text: TABLE 8-35 Number
Answer Preview: Solution; The health care team could use CUSUM Charts (Chi-square/proportion charts) to determine th…

, Chapter: 8 -Problem: 49 >> A major airline surveys passengers to monitor the satisfaction level of its customers. Even though the airline uses a five-point Likert scale (5: outstanding service; 4: good; 3: average; 2: below average; 1: poor), it wants to monitor the proportion that considers the service level as either outstanding or good. Table 8-38 shows the number of passengers responding to the survey and the number tha
Answer Preview: To construct a control chart to monitor the proportion of passengers that consider the airline service as either outstanding or good, we need to calcu…

, Chapter: 1 -Problem: 10 >> For a regional hospital in a metropolitan area, what are some of the internal failure and external failure costs? How might the y be reduced?
Answer Preview: Examples of internal failure costs are failure analysis activities , product rework costs, produ…

, Chapter: 9 -Problem: 42 >> Refer to Exercise 9-33 on the order completion time of a logistics firm. Upon conducting a methods study of the various operations, the firm was able to reduce the mean times of operation from 1 to 5.8 hours and that of operation 3 to 7.5 hours. Assume that the tolerances did not change. The customer requires an order completion time of 23.2 hours. Assuming normality, what proportion of orders wil
Answer Preview: Solution; (a) Since operation 1 is nearly twice as long as operation 2, we can say that the natural …

, Chapter: 3 -Problem: 27 >> What are some of the challenges faced by the healthcare industry in the twenty-first century?
Answer Preview: The rising cost of healthcare is one of the biggest challenges facing the healthcare industry in the …

, Chapter: 7 -Problem: 49 >> An investment bank is interested in monitoring the weekly amount (in millions of dollars) invested in volatile stocks so as to maintain a stable rate of return on a selected fund. Table 731 shows 25 consecutive weeks of the amount invested ($M) in the fund. Construct appropriate control charts and comment on the stability of invest­ ment. Revise the chart, if necessary, assuming special causes for
Answer Preview: To monitor the weekly amount invested, we can use a p-chart since the data are in the form of propor…

, Chapter: 7 -Problem: 54 >> For the patient data in Exercise 7-52 as shown in Table 7-32, construct a risk-adjusted exponentially weighted moving average (RAEWMA) chart using a weighting constant of 0.2 and a false-alarm rate of 0.10. Comment on the performance of the surgical team.Exercise 7-52The predicted mortality of cardiac surgery patients in an intensive care unit, based on their APACHE score, is found based on a logi
Answer Preview: The Risk-Adjusted Exponentially Weighted Moving Average (RAEWMA) chart is a statistical process cont…

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