Suppose that the process going out of control corresponds to a shift of the mean from
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Suppose that “the process going out of control” corresponds to a shift of the mean from to with probability .25, 2 with probability .25, with probability .25, and 2 with probability .25. What modifications in the model are required? In particular, if we write the shift in the form , show how to compute 1 and 2 that would correspond to values of 1 and 2, respectively.
If the out-of-control costs were now represented by a3 when 1 and a4 when 2, determine an expression for the average annual operating costs. (Assume all other costs and system parameters remain the same.)
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Production And Operations Analysis
ISBN: 9781478623069
7th Edition
Authors: Steven Nahmias, Tava Lennon Olsen
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