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what do you understand by Central Limit Theorem? A company believes a process monitored by an...

what do you understand by Central Limit Theorem? A company believes a process monitored by an xbar chart to be in control. When the most recent control point exceeded the UCL value by 20%, explain what the company should suspect and what can be found?

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Answer #1

The central limit theorem provides the statistical base for control charts. It states that if sample size is enough large with finite level of variance then the mean of samples are almost equals to the mean of population.

If the control points are not under the limits of Upper control limit (UCL) that means process is not in statistical control and it is not capable enough. If the most recent control point exceeded the UCL value by 20% then the company should suspect that an assignable cause of variation exists at this point of time and can be found by observation.

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