A Simple Statistical Tool for Increasing DV
A Cusum (Cumulative Sum) Chart provides very sensitive indication whether some process or other measured item began to change due to a special cause.
Never seen one? Check out my example. A “Brief” Cusum Example
What makes this good? Because it gives a very early indication about a chonic trend (high or low) from a specified target, you can make a quicker analysis and quicker decision about what to do to bring it back in line. In Decision Velocity terms, you change the speed and direction of that process and/or business to bring it back towards the goal.
In the example, when the trend starts downward it’s time to ask “What the heck is going on?”.
Add comment April 7th, 2007
