Common-cause variation and special-cause variation

Common-cause variation and special-cause variation

Business Statistics-Week 2 Discussion

Variation and Statistical Thinking Strategy” Please respond to the following:

– Compare and contrast the fundamental differences between special-cause variation and common-cause variation. Provide one (1) business process example of each variation to support your response.

– Select one (1) project from the working or educational environment of your choice and specify the variation nature of the project in question. Next, propose the overall manner in which you would apply statistical thinking strategy to improve the end result of the selected project. Provide a rationale to support your response.

Answer preview

Variance looks into the spread of a set of numbers from the mean. It is calculated and arrived at through standard deviation. It looks into how a given range of numbers vary or how data is distributed or spread out over a mean.

            Common cause variation was coined by Harry Alpert. It is also known as random cause or natural problem (Smith, 1998). On the other hand special cause variance was coined by W Edwards Deming and is also known as assignable cause. While common cause variation is not regular and is within a given historical base and experience, special cause variation is not within any historical base. I……………………