In the EWMA chart if you want to detect a change to 2.50 sigmas, the lambda (λ) that you would recommend among the alternatives presented would be:
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Step 1
Step 1: Recall the formula for the EWMA chart statistic: $Z_t = λY_t + (1-λ)Z_{t-1}$ where $Z_t$ is the EWMA statistic at time $t$, $Y_t$ is the observation at time $t$, and $λ$ is the smoothing parameter. Show more…
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