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Special and Common Cause System of Variation |
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Special and Common Cause System of VariationThe collection of variables that produce both common cause variation and special cause variation and the interaction of those variables.Similar MatchesSpecial Cause VariationSpecial Cause VariationVariation in the process that is assignable to a specific cause or causes. It arises because of special circumstances. Common Cause System of VariationCommon Cause System of VariationThe collection of variables that produce common cause variation and the interaction of those variables. Equivalent variationEquivalent variationThe amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in the economy. Provides a monetary measure of the welfare effect of that change that is similar to, but not in general the same as, compensating variation. Process VariationProcess VariationThe spread of process output over time. There is variation in every process, and all variation is caused. The causes are of two types: special or common. A process can have both types of variation at the same time or only common cause variation. The management action necessary to improve the process is very different in each situation. Compensating variationCompensating variationAn amount of money that just compensates a person, group, or whole economy, for the welfare effects of a change in the economy, thus providing a monetary measure of that change in welfare. Same as willingness to pay. Contrasts with equivalent variation. Further SuggestionsTrading variationdeed of variation Coefficient of Variation variation margin |
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