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As part of an insurance company’s training program, participants learn how to co

ID: 419484 • Letter: A

Question

As part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 32 to 47 minutes. Test results for three participants were: Armand, a mean of 38.0 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 37.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 39.5 minutes and a standard deviation of 2.2 minutes.

Which of the participants would you judge to be capable? (Do not round intermediate calculations. Round your answers to 2 decimal places.)


  

    

As part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 32 to 47 minutes. Test results for three participants were: Armand, a mean of 38.0 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 37.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 39.5 minutes and a standard deviation of 2.2 minutes.

a.

Which of the participants would you judge to be capable? (Do not round intermediate calculations. Round your answers to 2 decimal places.)


  

Participants          Cpk         Cp Capable ?   Armand (Click to select)NoYes   Jerry (Click to select)YesNo   Melissa (Click to select)YesNo

Explanation / Answer

Following may be noted:

Cp = (Upper specification limit, USL – Lower specification Limit, LSL ) / 6 x Standard deviation

Cpk = Minimum ( ( USL – m ) /3 x Sd , ( m – LSL) / 3 x Sd )

Where,

USL =              47 minutes                            , LSL =   32 minutes

M -= mean

Sd = Standard deviation

Therefore , Cp for Armand = ( 47 – 32 ) / 6 x 3 = 15/18 = 0.833

Cpk for Armand = Minimum ( ( 47 – 38) / 3 x 3 , ( 38 – 32 ) / 3 x 3 )

                           = Minimum ( 9/9 , 6/9)

                            = Minimum ( 1 , 0.666)

                             = 0.666

Therefore , Cp for Jerry = ( 47 – 32 ) / 6 x 2 = 15/12 = 1.25

Cpk for Jerry        = Minimum ( ( 47 – 37) / 3 x 2 , ( 37 – 32 ) / 3 x 2 )

                           = Minimum ( 10/6, 5/6)

                            = Minimum ( 1.666, 0.833)

                             = 0.833

Cp for Melissa = ( 47 – 32 ) / 6 x 2.2 = 15/ 13.2 = 1.136

Cpk for Melissa = Minimum ( ( 47 – 39.5) / 3 x 2.2 , ( 39.5 – 32 ) / 3 x 2.2 )

                           = Minimum ( 1.136 , 1.136 )

                            = 1.136

For a process to be conforming to 6 sigma limits, it is essential that Cp as well as Cpk both have values > 1 .

As evident from above data . it is only Melissa which conforms to above criteria . Therefore , we would consider participant Melissa to be most capable.

Participant

Cp

Cpk

Capable

Armand

0.833

0.666

No

Jerry

1.25

0.833

No

Melissa

1.136

1.136

Yes

Participant

Cp

Cpk

Capable

Armand

0.833

0.666

No

Jerry

1.25

0.833

No

Melissa

1.136

1.136

Yes