Question

In: Operations Management

Calculate the control limits for the X-bar chart with 0.005 probability limits (instead of 3-sigma limits)....

Calculate the control limits for the X-bar chart with 0.005 probability limits (instead of 3-sigma limits). That is, here the type I error rate (false alarm rate) is now set to α = 0.005. Use Excel for any calculations, not Minitab.

Day

x1

x2

x3

x4

x5

1

839

585

583

613

768

2

706

527

956

644

612

3

322

614

807

282

170

4

1001

904

419

522

430

5

259

811

847

603

572

6

681

523

665

397

873

7

799

874

553

173

296

8

263

585

546

445

455

9

591

637

739

927

825

10

372

997

496

283

641

11

633

371

425

625

752

12

294

522

599

740

468

13

714

600

738

694

610

14

311

829

216

447

506

15

720

446

393

431

707

16

306

550

633

845

394

17

561

574

370

495

580

18

431

500

580

349

626

19

404

791

773

576

1073

20

640

687

754

627

482

Solutions

Expert Solution

Formulas:

Methodology:

Step 1: Find the average of all sample (X-bar)

Step 2: Find the standard deviation of the operation using STDDEVA() formula and select all data.

Step 3: Std. Dev of Sample Mean

n = Sample Size = 5

Step 4: Find the average of sample mean (X -double bar)

Control Limits

Central Limit (CL) = X- double bar = 584.24

We need to find the Z -value for p = 1- 0.005 = 0.995

Z = 2.575


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