Question

In: Operations Management

As part of an insurance company’s training program, participants learn how to conduct an analysis of...

As part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 30 to 47 minutes. Test results for three participants were: Armand, a mean of 37.0 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 34.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 38.5 minutes and a standard deviation of 2.4 minutes.

a.Which of the participants would you judge to be capable? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Participants Cpk Cp Capable ?
Armand .89 .89 Incorrect No Correct
Jerry .82 .82 Incorrect No Correct
Melissa 1.18 1.18 Correct No Correct


b.
Can the value of the Cpk exceed the value of Cp for a given participant?

  • Yes

  • No

Solutions

Expert Solution

a)

Participants Cpk Cp Capable?
Armand 0.78 0.94 No
Jerry 0.67 1.42 No
Melissa 1.18 1.18 No

Cpk for Armand = Min[(37-30)/(3*3), (47-37)/(3*3)]

=Min(7/9,10/9) = 7/9 = 0.78 (Rounded to 2 decimal places)

Cpk fpr Jerry = Min[(34-30)/(3*2), (47-34)/(3*2)]

=Min(4/6,13/6) = 4/6 = 0.67 (Rounded to 2 decimal places)

Cpk fpr Melissa= Min[(38.5-30)/(3*2.4), (47-38.5)/(3*2.4)]

=Min(1.180555556,1.180555556) = 1.180555556 = 1.18 (Rounded to 2 decimal places)

Cp for Armand = (47-30)/(6*3) = 0.94

Cp for jerry = (47-30)/(6*2) = 1.42

Cp for Melissa = (47-30)/(6*2.4) = 1.18

No participants are capable as Cpk is less than 1.33


b)

No, the value of Cpk can not exceed the value of Cp for a given participant


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