Control Charts for the Variance and Coefficient of Variation Based on Their Predictive Distribution |
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| Authors: | Ulrich Menzefricke |
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| Institution: | 1. Joseph L. Rotman School of Management , University of Toronto , Toronto, Ontario, Canada menzefricke@rotman.utoronto.ca |
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| Abstract: | This article develops a control chart for the variance of a normal distribution and, equivalently, the coefficient of variation of a log-normal distribution. A Bayesian approach is used to incorporate parameter uncertainty, and the control limits are obtained from the predictive distribution for the variance. We evaluate this control chart by examining its performance for various values of the process variance. |
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| Keywords: | Bayesian analysis Coefficient of variation Control chart Log-normal distribution Normal distribution Predictive distribution Run length Variance |
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