Due to a trader who has “gone rogue,” an investment bank unknowingly experiences

Question

Due to a trader who has “gone rogue,” an investment bank unknowingly experiences a shift in one of its output measures, as depicted in the figure below. (The rogue trader knows the distribution has shifted, but the investment bank does not yet know it.) The red curve shows the distribution of output of the “old” process (it has mean mu-old and std dev sigma) while the purple curve (with mean mu-new and the same std dev sigma) shows the distribution of the new output. Which of the following will almost assuredly alert the investment bank to the fact that its process has changed?

   - X-bar chart

   - More than one of the other answers is correct.

   - R-chart

   - Process capability index, Cpk

Explanation / Answer

Answer:

Explanation:

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