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Concordia University
INSE 6220 Winter 2017
Advanced Statistical Approaches to Quality
Assignment #1 Due Date: February 13, 2017

Purpose: This assignment will give you the opportunity to learn more about probability distributions, statistical inference,
hypothesis tests, confidence intervals, and statistical process control charts.
Instructions: Submit your assignment electronically through Moodle before midnight of the due date. Hard copy
submissions will not be accepted. Write your name and ID number on the first page of your assignment submission
(otherwise, 5 marks will be deducted).

An entrepreneur faces many bureaucratic and legal hurdles when starting a new business. The following data shows the
time, in days, to complete all of the procedures required to start a business in 24 developed countries:
23 4 29 44 47 24 40 23 23 44 33 27 60 46 61 11 23 62 31 44 77 14 65 42
It is also reported that the overall average time to start a business in all developed countries is 29 days.
(a) Construct the dot plot.
(b) Construct the stem-and-leaf diagram.
(c) Calculate the sample range, mean, and median of the time-to-start data.
(d) Calculate the first and third quartiles.
(e) Calculate the sample variance and standard deviation.
(f) Check the assumption of normality for the time-to-start data using normplot and boxplot.
(g) Test whether the average time is different from the reported overall average time at the 5% significance level.
(h) Find the 90% two-sided confidence interval to estimate the average time. Comment on your result.
The management of a bank has embarked on a program of statistical process control and has decided to use variable
control charts to study the waiting time of customers during the peak noon to 1 p.m. lunch hour to detect special
causes of variation. Four customers are selected during the one-hour period; the first customer to enter the bank every
15 minutes. Each set of four measurements makes up a subgroup (sample). Table I lists the waiting time (operationally
defined as the time from when the customer enters the line until he or she begins to be served by the teller) for 20 days.

(a) Construct a table that shows the waiting time data along with the sample means and sample ranges.
(b) Estimate the process mean and standard deviation.
(c) Construct the R- and the X-charts. Identify the out-of-control points using all Western Electric rules. If necessary,
revise your control limits, assuming that any samples that violate Western Electric rules can de discarded.
(d) Assuming that the waiting times are normally distributed and and that specifications are 6 5 minutes, calculate
the process capability index and the proportion of the process that will not meet specifications.
INSE 6220 Winter 2017 Assignment #1

TABLE I
Waiting Time for Customers at a Bank.

Sample Data
Number X1 X2 X3 X4
1 7.2 8.4 7.9 4.9
2 5.6 8.7 3.3 4.2
3 5.5 7.3 3.2 6.0
4 4.4 8.0 5.4 7.4
5 9.7 4.6 4.8 5.8
6 8.3 8.9 9.1 6.2
7 4.7 6.6 5.3 5.8
8 8.8 5.5 8.4 6.9
9 5.7 4.7 4.1 4.6
10 4.9 6.2 7.8 8.7
11 7.1 6.3 8.2 5.5
12 7.1 5.8 6.9 7.0
13 6.7 6.9 7.0 9.4
14 5.5 6.3 3.2 4.9
15 4.9 5.1 3.2 7.6
16 3.7 4.0 3.0 5.2
17 2.6 3.9 5.2 4.8
18 4.6 2.7 6.3 3.4
19 7.2 8.0 4.1 5.9
20 6.1 3.4 7.2 5.9