Construct appropriate control chart and comment on stability

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An investment bank is interested in monitoring the weekly amount (in millions of dollars) invested in volatile stocks so as to maintain a stable rate of return on a selected fund. Table shows 25 consecutive weeks of the amount invested ($M) in the fund.

Construct appropriate control charts and comment on the stability of investment. Revise the chart, if necessary, assuming special causes for out-of-control points. What is your estimate of the standard deviation of the weekly amount invested?

Table: Weekly investment in Volatile Stocks

Week

Investment(SM)

Week

Investment(SM)

Week

Investment(SM)

1

16.2

10

12.9

19

16.3

2

10.8

11

28.5

20

14.2

3

18.9

12

23.3

21

21.5

4

14.4

13

20.2

22

18.6

5

15.7

14

19.3

23

20.9

6

25.3

15

14.8

24

22.4

7

20.4

16

18.7

25

21.8

8

22.6

17

20.4

 

 

9

17.8

18

21.2

 

 

Reference no: EM131384764

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