José-Luis Guerrero-Cusumano

Testing variability in multivariate quality control: a conditional entropy measure approach

Abstract In this paper the concept of entropy is used to construct multivariate quality-control charts to monitor multivariate variability in a process. It is assumed that the data parent population is multivariate normal with covariance structure Σ and estimator S . The asymptotic distribution of the sample entropy is obtained. It is shown that the use of | S | as an overall measure of variability is not satisfactory and it is proposed a conditional entropy approach when the correlation matrix P 0 is known or fixed. Under these assumptions, two new overall variability measures are defined based on the sample variances and ranges on the variables under consideration. Control charts are developed using these concepts and are applied to a multivariate quality-control example.

A measure of total variability for the multivariate t distribution with applications to finance

General expressions for the entropy of the multivariate t and Cauchy distributions are derived, as well as their sample moments, generated functions, cumulant functions, means, and variances. The asymptotic distribution of the multivariate t entropy is also obtained. A real life application for index returns of four different countries is considered, and the analysis of their multivariate variability is analyzed by means of the entropy.

East meets West: Weaving the threads of Deming, da Vinci and the Tao Te Ching

Douglas A. Hensler, Rick L. Edgeman & Jose-Luis Guerrero-Cusumano College of Engineering and Applied Science, University of Colorado at Boulder, Campus Box 433, Boulder, CO 80309-0433, USA, Multinational Alliance for the Advancement of Organizational Excellence, College of Business, Colorado State University, Fort Collins, CO 80523, USA & The Summer International Management Programme at Oxford University, McDonough School of Business, Georgetown University, Washington, DC, 20057, USA

An asymptotic test of independence for multivariate t and Cauchy random variables with applications

An asymptotic test for independence for multivariate t and Cauchy random variables is developed based on Kullback-Leibler number. The mutual information number T(X) is obtained for the multivariate t and Cauchy distribution in a closed expression form as well as the moment generating function and asymptotic distribution for its sample estimator T(X). This test is applied to the multiple regression problem of stocks returns.

Measures of dependence for the multivariate t distribution with applications to the stock market

Two measures of dependence for multivariate t and Cauchy random variables are developed based on Kullback–Leibler number. The mutual information number T(X) is obtained in a closed expression form, as well as its asymptotic distribution. A dependence coefficient ρ1, is defined (based on the Kullback–Leibler number) with the properties of ρ1=0 indicating independence and ρ1=1indicating degeneracy. Two real life examples from the stock market are used to analyze the level of dependence and correlation among stocks.

Next‐generation quality management: multinational, multidisciplinary and performance‐focused

Outlines the origin, vision, guiding principles and strategic intents of the Multinational Alliance for the Advancement of Organizational Excellence (MAAOE). Describes how MAAOE brings together leaders from many disciplines who are bonded together by a shared desire to investigate, create, disseminate and apply the multidisciplinary and multicultural knowledge necessary to assist organizations in their quest for excellence.

A WHITE PAPER: QUALITY AT THE CROSSROADS OF ORGANIZATIONAL EXCELLENCE AND THE ACADEMY

A new professional organization was birthed at Colorado State University in November 1998. The Multinational Alliance for the Advancement of Organizational Excellence (MAAOE) brings together leaders from many disciplines. They are bonded by a shared d..

A comparison of international quality standards: divergence and agreement

Summarizes the main points of divergence between the French EAQF, German VDA 6, and USA QS 9000 standards in the automotive sector and evaluates their possible impact on eligibility for certification under the quality standard of comparison. While particular differences are marked, a converging trend based on QS 9000 requirements is emerging. This indicates that, while at first these developments point at a proliferation of quality standards, international quality standards in the automotive sector are in fact converging.

Benchmarking procedural times: a quality control approach to court delays

Establishes a method aimed at defining procedural delays. The time delay in the procedural life of a case under any legal system has been considered as one of the main sources of direct costs and uncertainty for businesses once litigation starts. Yet, no methodology exists until now which is able to develop benchmarks that would define expected procedural time under controlled court conditions. Finds the main court and user‐related factors associated to the times disposition in bankruptcy cases within the first instance level and determines an “ideal” time to disposition within a quality control framework. Considers an applied case using data belonging to the commercial first instance courts in Argentina. The results of the analysis conclude that the economic resources devoted to court personnel, not to capital spending, and an active case management style applied by a judge reduce the median procedural times.

A test for population collinearity: A Kullback-Leibler information approach

We study collinearity as a population characteristic. The intention of this article is to measure degree of population collinearity and statistically determine whether collinearity exists in the original population of the predictors. We use concepts of cybernetics and information theory to define and measure the degree of collinearity by means of the Kullback-Leibler number. This Kullback-Leibler Information approach proposes a test for detecting population collinearity and analyzing its sample distribution. We provide 5% and 1% cutoff-point tables for the test Ho) “no population collinearity” and also provide formulas for the cumulative distribution function of test statistic for collinearity.