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Control Chart

A hospital struggling to contain costs investigates procedures on which it loses money. Government standards place medical procedures into Diagnostic Related Groups (DRGs). For example, major joint replacements are DRG 209. The hospital takes from its records a random sample of 8 DRG 209 patients each month. The losses incurred per patient have been in control, with mean of $6400 and a standard deviation of $700. Here are the mean loses for the samples taken in the next 15 months:

6244 6534 6080 6476 6469 6544 6415 6697 6497
6912 6638 6857 6659 7509 7374

What does an x chart suggest about the hospital's loses on major joint replacements? Include the control chart.

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Please see the attached file for chart etc.
A hospital struggling to contain costs investigates procedures on which it loses money. Government standards place medical procedures into Diagnostic Related Groups (DRGs). For example, major joint replacements are DRG 209. The hospital takes from its records a random sample of 8 DRG 209 patients each month. The losses incurred per patient have been in control, with mean of $6400 and a standard deviation of $700. Here are the mean loses for the samples taken in the next 15 months:

6244 6534 6080 ...

Solution Summary

Prepares and interprets a x bar control chart.

$2.19