Refer to given Exercise. Construct an exponentially weighted moving-average chart using a weighting constant of 0.2 for the decision-making process and comment. Is the existing process capable of meeting a goal value of 12 weeks?
Exercise
The time to evaluate and make a decision on mortgage loan applications is being examined in a financial institution. Twenty-five mortgage applications are selected from the previous month and the decision-making times, in days, are shown in given Table. Construct an appropriate control chart and comment on the timeliness of the decision-making process. Revise the chart, if necessary, assuming special causes for out-of-control points. What is the expected time to make a decision? What is your estimate of the standard deviation of the time to make a decision?
