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1. [Chapter 6S: 15 points] A national company opens a sales office with six sales agents in Guelph, Ontario. The office has been open for just six months. All the sales agents have the same responsibilities and opportunities. The number of new accounts generated by each sales agent in the first six months of the operation is provided in the table below.

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The company's policy calls for a semiannual review of performance to determine who should be rewarded or punished.

a) Do you think/expecct the company manager will reward Fred and punish David based on their performance in the last six months? Why?

b) What type of control chart should be used for review of performance? Why? Construct an appropriate three sigma control chart for the number of new accounts opened by the six agents. Is the number of new accounts opened in a state of statistical control?

c) Based on the control chart you developed in part (b), do you now think that Fred and David be singled out for special attention regarding their performance? In other words, do you think the company will reward Fred and punish David? Does your conclusion agree with what you expected the manager to do in part (a)? Why?

d) Supposed Fred had generated 66 new accounts (instead of 36). Develop a new control chart. Based on your new control chart, do you think Fred will receive special recognition/rewarded? Why?

e) Now, suppose that the company is attempting to develop a quality monitoring system for customer account management. To set up a control chart, the manager has decided to take a sample of 64 customer accounts. These accounts have either errors or error-free. The error rate (or defect rate) is about 3.5%. What type of control chart should be used for the account management system? Why? What are the upper and lower control limits if the manager wishes to use three-sigma limits? Today the manager discovered that eight out of 64 customer accounts have errors. Is the account management process in statistical control? Why or why not? (4)

Please only answer if you are serious, and take the time to read this specific problem (not copy and paste from past questions)

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Name of Sales Agent Number of New Accounts Allan 27 Fred 36 Mark 28 David 24 John 29 Phil 30 Total 174

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Name of Sales Agent Number of New Accounts Allan 27 Fred 36 Mark 28 David 24 John 29 Phil 30 Total 174
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