Kittlitz (1999) presents data on homicides in Waco, Texas, for the years 1980-1989 (data taken from the
Question:
(a) Plot the days-between-homicides data on a normal probability plot. Does the assumption of a normal distribution seem reasonable for these data?
(b) Transform the data using the 0.2777 root of the data. Plot the transformed data on a normal probability plot. Does this plot indicate that the transformation has been successful in making the new data more closely resemble data from a normal distribution?
(c) Transform the data using the fourth root (0.25) of the data. Plot the transformed data on a normal probability plot. Does this plot indicate that the transformation has been successful in making the new data more closely resemble data from a normal distribution? Is the plot very different from the one in part (b)?
(d) Construct an individuals control chart using the transformed data from part (b).
(e) Construct an individuals control chart using the transformed data from part (c). How similar is it to the one you constructed in part (d)?
(f) Is the process stable? Provide a practical interpretation of the control chart.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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