Refer to given Exercise. Demonstrate if the existing process in making a decision on loan applications is capable of meeting a goal value of 12 weeks. Assuming a normal distribution of the decision-making time, what proportion of the applications will not meet this goal value?
Exercise
The time to evaluate and make a decision on mortgage loan applications is being examined in a financial institution. Twenty-five mortgage applications are selected from the previous month and the decision-making times, in days, are shown in Table 7-30. Construct an appropriate control chart and comment on the timeliness of the decision-making process. Revise the chart, if necessary, assuming special causes for out-of-control points. What is the expected time to make a decision? What is your estimate of the standard deviation of the time to make a decision?
