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mathematics
statistics

Questions and Answers of Statistics

An assemble-to-order hardware company has two types of central processing units (CPUs), Cl and C2, and two types of display monitors, Ml and M2. Unit C2 is slightly more complex then Cl, as is M2
For the hardware company in Exercise 1-15, suppose that setup and testing costs are different for CPUs and monitors. Annual costs for setup and testing are $0.4 million and $0.7 million, for CPUs and
Consider the hardware company in Exercise 1-15. The company is contemplating outsourcing of its complex monitor M2. Assume that all other information remains as given in Exercise 1-15.(a) What is the
A pharmaceutical company has obtained the following cost information (per 1000 tablets) based on the production of a drug in the past year: material, $150; direct labor, $100; energy, $50; overhead,
The following data (in $/m3) was obtained from a company that makes insulation for commercial buildings: direct labor, 20; direct materials, 30; indirect labor and materials, 30% of direct labor;
The senior management in an urban bank is committed to improving its services. Discuss the specifics of quality of design, conformance, and performance in this context. Elaborate on possible basic
In the production of a part for a printer, four sequential operations are involved. Unit processing costs for the operations are $10, $6, $15, and $20, respectively. The firstpass yield for each
Suppose that the prevention and appraisal cost functions are given by Cp - 50q2 and Ca = 10(7, respectively, where q represents the degree of quality level (0 < q < 1). The cost of reworking a unit
Suppose that the prevention cost function is as given in Exercise 1-21. However, the unit appraisal cost is $2, with the cost function being linear in 1 - q, implying a decrease in appraisal costs as
Consider Exercise 1 -22. Suppose that market share is strongly influenced by the level of quality, with the revenue function given by 90q2. What is the net profit function? What is the minimum
A travel agency is attempting to enter a market where several competitors currently exist. What are the various customer needs that they should address? How will quality be measured? As the company
Consider the hospitality industry. Describe special causes and common causes in this setting and discuss the role of quality control and quality improvement.
An OEM in the automobile industry is considering an improvement in its orderprocessing system with its tier 1 suppliers. Discuss appropriate measures of quality. What are some special and some common
An intermodal logistics company uses trucks, trains, and ships to distribute goods to various locations. What might be the various quality costs in each of the categories of prevention, appraisal,
A quality improvement program has been instituted in an organization to reduce total quality costs. Discuss the impact of such a program on prevention, appraisal, and failure costs.
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)
Discuss the indices for measuring quality costs. Give examples where each might be used.
Who is the customer in health care? Describe some of the customer's needs.
What are the drawbacks of some traditional performance appraisal systems, and how may they be modified?
What is the difference between quality control and quality improvement? Discuss the role of management in each of these settings.
Discuss the five deadly diseases in the context of Deming's philosophy of management. What remedial actions would you take?
Explain the drawbacks of a bottom-line management approach.
Discuss the dilemma management faces when they sacrifice short-term profits for long- run stability. What approach is recommended?
Explain Deming's system of profound knowledge with specifics in the following industries: (a) Hospital (b) Software company
What are some organizational culture issues that management must address as they strive for long-run stability and growth?
American Airlines, through the use of its SABRE reservation system, realized the potential of yield management. Through such a system, it monitored the status of its upcoming flights and competitors'
American Express has access to the spending habits of its cardholders. How may it use this information to improve customer satisfaction? How may its retail customers use this information?
Discuss some service nonconformity and behavioral characteristics in the following areas: (a) Health care (b) Call center (c) Internal Revenue Service (d) Airline industry
Refer to Exercise 2-2. For each situation, discuss the ease or difficulty of measuring service quality. What are some remedial measures? (a) Health care (b) Call center (c) Internal Revenue
Refer to Exercise 2-2. For each situation, explain what factors influence customer perception of quality and how they are to be managed. (a) Health care (b) Call center (c) Internal Revenue
The following companies are interested in conducting a market survey of their products/ services. Explain the possible sampling techniques that they might choose. (a) High-end automobiles (b) Cooking
Explain the notion of the extended process and its significance. Discuss this in the context of the following organizations: (a) Hardware vendor (such as for computers and printers) (b) Hospital (c)
What are the reasons for mass inspection not being a feasible alternative for quality improvement?
Describe some characteristics for selecting vendors in the following organizations and the selection process to be followed. (a) Supermarket (b) Physician's office (c) Fast-food restaurant
Explain the organizational barriers that prevent a company from adopting the quality philosophy. Describe some specific action plans to remove such barriers.
Describe the total quality management philosophy. Choose a company and discuss how its quality culture fits this theme.
Describe the steps of benchmarking relative to a company that develops microchips. What is the role of top management in this process?
What are the various types of quality audits? Discuss each and identify the context in which they are used.
A financial institution is considering outsourcing its information technology-related services. What are some criteria that the institution should consider? Propose a scheme to select a vendor.
The area of nanotechnology is of much importance in many phases of our lives-one particular area being development of drugs for Alzheimer's disease. Discuss the role of benchmarking, innovation, and
In a large city, the mass-transit system, currently operated by the city, needs to be overhauled with projected demand expected to increase substantially in the future. The city government is
What is the purpose of vendor certification? Describe typical phases of certification.
Discuss the role of national and international standards in certifying vendors.
The postal system has undertaken a quality improvement project to reduce the number of lost packages. Construct a cause-and-effect diagram and discuss possible measures that should be taken.
The safe operation of an automobile is dependent on several subsystems (e.g., engine, transmission, braking mechanism). Construct a cause-and-effect diagram for automobile accidents. Conduct a
Consider Exercise 3-18 on the prevention of automobile accidents. However, in this exercise, consider the driver of the automobile. Construct a cause-and-effect diagram for accidents influenced by
What are the advantages of creating a long-term partnership with vendors?
You are asked to make a presentation to senior management outlining the demand for a product. Describe the data you would collect and the tools you would use to organize your presentation.
What are some reasons for failure of total quality management in organizations? Discuss.
Discuss the role of established standards and third-party auditors in quality auditing. What is the role of ISO 9000 standards in this context?
In a printing company, data from the previous month show the following types of errors, with the unit cost (in dollars) of rectifying each error, in Table 3-14.(a) Construct a Pareto chart and
An insurance company is interested in determining whether life insurance coverage is influenced linearly by disposable income. A randomly chosen sample of size 20 produced the data shown in Table
Compare and contrast a company vision, mission, and quality policy. Discuss these concepts in the context of a hospital of your choice.
Is accomplishing registration to ISO 9001 standards similar to undergoing an audit process? What are the differences?
Discuss the emerging role of ISO 9000 standards in the global economy.
What is the role of the Malcolm Baldrige National Quality Award? How is it different from ISO 9000 standards? Explain the obligations of the Malcolm Baldrige Award winners.
In a chemical process, the parameters of temperature, pressure, proportion of catalyst, and pH value of the mixture influence the acceptability of the batch. The data from 20 observations are shown
Describe Motorola's concept of six sigma quality and explain the level of nonconforming product that could be expected from such a process.
What are the advantages of using quality function deployment? What are some key ingredients that are necessary for its success?
Select an organization of your choice in the following categories. Identify the organization's strategy. Based on these strategies, perform a balanced scorecard analysis by indicating possible
Consider the airline transportation industry. Develop a house of quality showing customer requirements and technical descriptors.
Consider a logistics company transporting goods on a global basis. Identify possible vision and mission statements and company strategies. Conduct a balanced scorecard analysis and indicate suggested
Consider the logistics company in Exercise 3-8. Conduct a quality function deployment analysis where the objective is to minimize delays in promised delivery dates.
The development of new drugs has to undergo stringent regulations resulting in long lead times and high research and development costs. Suppose that you are in charge of the federal agency that
Refer to Exercise 4-7. For each situation, define a type I and a type II error in the appropriate context. Consider the costs of such errors and discuss the implications. (a) The Postal Service
Consider the price of homes in a large metropolitan area. What kind of distribution would you expect in terms of skewness and kurtosis? As an index, would the mean or median price be representative?
With increased air travel, the training of air traffic controllers is vital. However, of those who enter the program, several drop out, for a variety of reasons. In the past, 70% have completed the
For each of the following areas, define appropriate quality characteristic(s) and parameters and indicate the hypotheses that you would test: (a) Effectiveness of a hospital in satisfying patients,
Based on historical data, it is estimated that 12% of new products will obtain a profitable market share. However, if two products are newly introduced in the same year, there is only a 5% chance of
Two types of defects are observed in the production of integrated circuit boards. It is estimated that 6% of the boards have solder defects and 3% have some surface-finish defects. The occurrences of
The settling of unwanted material in a mold is causing some defects in the output. Based on recent data, it is estimated that 5% of the output has one or more defects. In spot checking some parts, an
The following times (in minutes) to process hot-rolled steel are observed for a random sample of size 10 as follows:(a) Find the mean, median, and mode of the processing times. Interpret the
A pharmaceutical company making antibiotics has to abide by certain standards set by the Food and Drug Administration. The company performs some testing on the strength of the antibiotic. In a case
A company involved in making solar panels estimates that 3% of its product is nonconforming. If a random sample of 5 items is selected from the production output, what is the probability that none
Customers arrive at a department store, randomly and independently. (a) What is an appropriate distribution for modeling the number of customers that arrive in a 2-hour period? (b) Under what
A university has purchased a service contract for its computers and pays $20 annually for each computer. Maintenance records show that 8% of the computers require some sort of servicing during the
The probability of an electronic sensor malfunctioning is known to be 0.10. A random sample of 12 sensors is chosen. Find the probability that: (a) At least 3 will malfunction. (b) No more than 5
A process is known to produce 5% nonconforming items. A sample of 40 items is selected from the process. (a) What is the distribution of the nonconforming items in the sample? (b) Find the
The guidance system design of a satellite places several components in parallel. The system will function as long as at least one of the components is operational. In a particular satellite, 4 such
In a lot of 200 electrical fuses, 20 are known to be nonconforming. A sample of 10 fuses is selected. (a) What is the probability distribution of the number of nonconforming fuses in the sample? What
A local hospital estimates that the number of patients admitted daily to the emergency room has a Poisson probability distribution with a mean of 4.0. What is the probability that on a given day: (a)
In an auto body shop, it is known that the average number of paint blemishes per car is 3. If 2 cars are randomly chosen for inspection, what is the probability that: (a) The first car has no more
The number of bank failures per year among those insured by the Federal Deposit Insurance Company has a mean of 7.0. The failures occur independently. What is the probability that: (a) There will be
The outside diameter of a part used in a gear assembly is known to be normally distributed with a mean of 40 mm and standard deviation of 2.5 mm. The specifications on the diameter are (36,45), which
The breaking strength of a cable is known to be normally distributed with a mean of 4000 kg and a standard deviation of 25 kg. The manufacturer prefers that at least95% of its product meet a strength
The specifications for the thickness of nonferrous washers are 1.0 ± 0.04 mm. From process data, the distribution of the washer thickness is estimated to be normal with a mean of 0.98 mm and a
A company has been able to restrict the use of electrical power through energy conservation measures. The monthly use is known to be normal with a mean of 60,000 kWh (kilowatt-hour) and a standard
A component is known to have an exponential time-to-failure distribution with a mean life of 10,000 hours. (a) What is the probability of the component lasting at least 8000 hours? (b) If the
The time to repair an equipment is known to be exponentially distributed with a mean of 45 min. (a) What is the probability of the machine being repaired within half an hour? (b) If the machine
A limousine service catering to a large metropolitan area has found that the time for a trip (from dispatch to return) is exponentially distributed with a mean of 30 minutes. (a) What is the
The time to failure of an electronic component can be described by a Weibull distribution with γ = 0, β = 0.25, and a = 800 hours. (a) Find the mean time to failure. (b) Find the standard deviation
The time to failure of a mechanical component under friction may be modeled by a Weibull distribution with ã = 20 days, â = 0.2, and a = 35 days. (a) What proportion of these components will fail
The diameter of bearings is known to have a mean of 35 mm with a standard deviation of 0.5 mm. A random sample of 36 bearings is selected. What is the probability that the average diameter of these
Refer to Exercise 4-37. Suppose that the machine is considered to be out of statistical control if the average diameter of a sample of 36 bearings is less than 34.75 mm or greater than 35.25 mm. (a)
Vendor quality control is an integral part of a total quality system. A soft drink bottling company requires its vendors to produce bottles with an internal pressure strength of at least 300 kg/cm2.
Explain the difference between accuracy and precision of measurements. How do you control for accuracy? What can you do about precision?
An electronic switch has a constant failure rate of 10-3 per hour. (a) What is the expected life of the switch? (b) What is the standard deviation of the life of the switch? (c) Find the probability
Refer to the electronic switch in Exercise 4-40. In order to improve the reliability of a system, three such additional switches are used on a standby basis. This means that only when a switch fails,
Reinforced concrete beams are used in bridges. However, cracks develop in these beams and it has an accumulation effect over time. The time to failure of such bridges, in days, is modeled by a
The mean time to assemble a product as found from a sample of size 40 is 10.4 minutes. The standard deviation of the assembly times is known to be 1.2 minutes. (a) Find a two-sided 90% confidence

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