BSTA 320 Winter 2020 Major Assignment 2: Statistics Analysis

This document presents a solution to a BSTA 320 Major Assignment 2 focused on Statistical Process Control (SPC). The assignment analyzes data from a cereal company's quality control process, calculating and interpreting control limits for both R charts and X-bar charts. The solution includes the calculation of upper and lower control limits for the range (R) chart, the creation of the R chart, and the analysis of the X-bar chart to determine if the process is under control. Additionally, the assignment explores the application of a P-chart to determine the control limits of a financial institution's commercial loan operation. The document provides step-by-step solutions to the questions, including interpretations of the charts to assess the process stability and control. The assignment also includes a bibliography of relevant project management and statistical resources.

Running head: STATISTICS
Statistics
Name of the Student:
Name of the University:
Author note:

1
STATISTICS
Table of Contents
Answer to the question 1............................................................................................................2
Part (a)....................................................................................................................................2
Part (b)....................................................................................................................................2
Part (c)....................................................................................................................................3
Part (d)....................................................................................................................................3
Part (e)....................................................................................................................................3
Part (f)....................................................................................................................................4
Answer to the question 2............................................................................................................4
Part (a)....................................................................................................................................4
Part (b)....................................................................................................................................4
Part (c)....................................................................................................................................5
Part (d)....................................................................................................................................5
Bibliography...............................................................................................................................6

2
STATISTICS
Answer to the question 1
Part (a)
R chart
Part (b)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
0
5
10
15
20
25 R Chart
Range R-bar UCL LCL

3
STATISTICS
Part (c)
The range is on the control. Because the range values are lies within the upper and
lower control limit.
Part (d)
X-bar chart
Part (e)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
588
590
592
594
596
598
600
602
X-Bar chart
X bar X_Dbar UCL LCL

4
STATISTICS
Part (f)
The mean chart is under control. Because the mean values (X-bar) are lies within the
lower and upper control limit.
Answer to the question 2
Part (a)
The P-chart has been applied to determine the control limit of commercial loan
operation of a financial institution. Because in the table for each day, the sample size (n) and
the number late (np) are given.
Part (b)
P-Chart

5
STATISTICS
Part (c)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-0.02
-0.01
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
P- Chart
p p_bar UCL LCL
Sample (DAY)
Proportion
Part (d)
The process is out of control. Because the p values are lies outside the upper control
limit.

6
STATISTICS
Bibliography
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA, 26.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.