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DATA ANALYSIS FOR MANAGEMENT ASSIGNMENT-2

DEPT. OF MANAGEMENT STUDIES 2013-2015

SUBMITTED BY:

AMANDEEP GAJRAJ MS13A010
ANIRUDH K MURTHY MS13A014
SHAILY DAGA MS13A058
SHRIRAM K MS13A060
SOUMY KANTA MISHRA MS13A062
VIKRAM RAMESH BABU MS13A072

4M Monitoring an Email System

Explain why the firm needs to allow for variation in the underlying volume. Why not simply send engineers in search of the problem whenever e-mail use exceeds a rate of say 1000 messages?
Because the number of messages per day is 7680, there is a high chance that engineers will get false alarms. So the 1000 messages limit is not feasible and even if it is, it requires aggressive monitoring.
Explain why it is important to monitor both the mean and the variance of the volume of email on this system
It is important to monitor both the mean and the variance because a change in mean implies a change in the number of users using the email system. This is important for diagnostic purposes and identifying the usage patterns of the system. Depending on the shift in mean, the upper control limits and the lower control limits can be modified. A shift in the variance depicts how the number of users vary every hour. By looking at this, we can find out which part of the day there are more number of users and how much deviation is a safe limit. So it is necessary to monitor both the mean and the variance.
Because the computer support team is well-staffed, there is minimal cost in having someone check for a problem. On the other hand, failing to identify a problem could be serious because it would allow the problem to grow in magnitude. What value do you recommend for α, the chance of a Type I error?
For a value lying between the Upper Control Limit & Lower Control Limit, there is no error. If the system goes out of control, Type I error occurs. Usually for a normally distributed pattern,

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