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sertanlavr [38]
3 years ago
12

Describe a process with which you are familiar. List some factors that contribute to common cause variation. Cite some examples

of special causes of variation in this process.
Business
1 answer:
kolezko [41]3 years ago
3 0

Answer / Explanation:

If given a couple of data and asked to analyse it, there is bound to be some level of variation. Irrespective of how much e try to avoid it, we will find it difficult to achieve identical results for two different scenarios.

Variation can therefore be defined as the quantitative or numerical approach used to indicate how widely individuals in a group vary.

Factors that contributes to common cause variation includes:

First, we need to understand that Common Cause Variation are caused by unknown factors that result in a steady but random distribution of output around the average of the data. We need to understand that Common cause variation is the remaining variation after removing the special causes (non-normal causes) due to one or more of the 5Ms and an “E” causes (Manpower, Material, Method, Measurement, Machine, and Environment), also known as 6Ms (Manpower, Mother nature, Materials, Method, Measurements or Machine).

And some special cause of variation in this instance includes:

Phenomena that are active within the system

Variation within a historical experience base which is not regular

Lack of significance in individual high and low values

Human error

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Griffins Goat Farm, Inc., has sales of $664,000, costs of $326,000, depreciation expense of $70,000, interest expense of $45,000
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Answer:

a. $6.54 per share

b. $1.73 per share

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