Construct appropriate control charts and comment

Reference no: EM131384757

Refer to given Exercise. Construct an exponentially weighted moving-average chart using a weighting constant of 0.2 for the weekly amount invested. Comment on the process. If it is desired to have a goal value of $1.5M for the standard deviation, using the constructed chart, comment on the ability of the process to achieve this goal.

Exercise
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 7-31 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?

2361_Tab 4.jpg

Reference no: EM131384757

Questions Cloud

Discuss age-related changes in conception of death : Discuss age-related changes in conception of and attitude toward death, including ways to enhance child and adolescent understanding of death and dying.

Define the term good for the purpose of this situation : Write a 1,050-word argumentative essay on your approved business decision including the following: Discuss why the business decision is good or not good for business.Define the term "good" for the purpose of this situation.Identify the premise and c..

What role does culture play with a weak or negative culture : Visit the online library to identify and cite an additional definition of organizational culture and compare it to the definition offered in textbook. What role does culture play with a weak or negative culture with respect to a competitive advanta..

Create a completely new-and more effective-strategic plan : In coming months, you and your team will be creating a completely new-and, presumably, more effective-strategic plan. You plan to begin by holding a kick-off meeting with your team.

Construct appropriate control charts and comment : 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?

How does avoidance differ from the escape behavior : There are multiple forms of avoidance. Explain the two you feel are the most effective at changing behaviors and give an example of how you could apply the techniques. How does avoidance differ from the escape behavior that we discussed in Chap..

Create a new organizational design that you think would help : Create a new organizational design that you think would help the company operate more efficiently and effectively. Iidentify at least 10 problems with the design of Creative Cards, Inc. Be sure to consider work specialization

Construct risk adjusted cumulative sum chart : Construct a risk-adjusted cumulative sum chart for patient mortality to determine if there has been an improvement.- Comment on the performance of the surgical team.

Why do you think this might be the case : We know that we're often more motivated when we're running toward something (an approach goal) as opposed to trying to avoid something. Why do you think this might be the case? Most goals can be phrased as both an approach goal and an avoidan..

User Account

All Pages