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Concepts from Statistical Control Theory

June 8, 2010

Outside of the realm of systems and trading, there is a whole discipline devoted to monitoring and maintaining quality control over manufacturing outputs. This pic was borrowed from the original post http://www.shmula.com/241/statistical-process-control-why-you-should-care. Im sure a picture in this case is worth a thousand words—or ideas!

Below is a general guideline for interpreting a Control Chart:

shmula.com, control charts, statistical process control

Read More: http://www.shmula.com/241/statistical-process-control-why-you-should-care#ixzz0qEYuybKU

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One Comment leave one →
  1. June 8, 2010 10:53 am

    I wonder what kinds of distributions they are actually monitoring. I grew up 60 miles south of Chernobyl… not sure if they’ve compiled a control chart for the black swan formation:

    http://bigpicture.typepad.com/comments/2008/06/uh-oh-dangerous.html

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