Business

The Digital Guardian Company issues policies that protect clients from downtime costs due to computer system failures. It is very important to process the policies quickly because long cycle times not only put the client at risk, they could also lose business for Digital Guardian. Management is concerned that customer service is degrading because of long cycle times, measured in days. The following table contains the data from five samples, each sample consisting of eight random observations.

  OBSERVATIONS (DAYS)
Sample 1 2 3 4 5 6 7 8
1 13 9 4 8 8 15 8 6
2 7 15 8 10 10 14 10 15
3 8 11 4 11 8 12 9 15
4 12 7 12 9 11 8 12 8
5 8 12 6 12 11 5 12 8

 

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a. What is your estimate of the process average?

b. What is your estimate of the average range?

c. Construct an R-and an x-bar-chart for this process. Are assignable causes present?

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