A First Order Markov Chain Model For Autocorrelated Processes

Donald S. Holmes, Stochos, Inc.
A. Erhan Mergen, Rochester Institute of Technology

ABSTRACT
This paper discusses a first order Markov Chain (MC) model of the lot quality distribution for autocorrelated processes and how it can be integrated into statistical process control applications. The proposed model is based on a summary of the previous works by the authors on developing a first order Markov Chain (MC) model for the lot quality distribution. The model assumes that lots are formed from items that are sequentially produced by an autocorrelated process. Potential applications of this lot quality distribution and how it can improve the performance of some statistical process control and acceptance sampling methods are discussed.

Key words: Markov chain, lot quality distribution, processes with autocorrelation. .

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Updated 03/19/2014