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The Theory of Control Charts

A process is the value-added transformation of inputs to outputs. The inputs and outputs of a process can involve machines, materials, methods, measurement, people, and the environment. Each of the inputs is a source of variability. Variability in the output can result in poor service and poor product quality, both of which often decrease customer satisfaction. Control charts, developed by Walter Shewhart in the 1920s, are commonly used statistical tools for monitoring and improving processes. A control chart analyzes a process in which data are collected sequentially over time. You use a control chart to study past performance, to evaluate present conditions, or to predict future outcomes. You use control charts at the beginning of quality improvement efforts to study an existing process (such charts are called Phase 1 control charts).

Information gained from analyzing Phase 1 control charts forms the basis for process improvement. After improvements to the process are implemented, you then use control charts to monitor the processes to ensure that the improvements continue (these charts are called Phase 2 control charts). Different types of control charts allow you to analyze different types of critical-to-quality variables—for categorical variables, such as the proportion of hotel rooms that are nonconforming in terms of the availability of amenities and the working order of all appliances in the room; for discrete variables such as the number of hotel guests registering complaints in a week; and for continuous variables, such as the length of time required for delivering luggage to the room. In addition to providing a visual display of data representing a process, a principal focus of a control chart is the attempt to separate special causes of variation from common causes of variation.

Special causes of variation represent large fluctuations or patterns in data that are not part of a process. These fluctuations are often caused by unusual events and represent either problems to correct or opportunities to exploit. Some organizations refer to special causes of variation as assignable causes of variation. Common causes of variation represent the inherent variability that exists in a process. These fluctuations consist of the numerous small causes of variability that operate randomly or by chance. Some organizations refer to common causes of variation as chance causes of variation.

Control charts allow you to monitor a process and identify the presence or absence of special causes. By doing so, control charts help prevent two types of errors. The first type of error involves the belief that an observed value represents special cause variation when it is due to the common cause variation of the process. Treating common cause variation as special cause variation often results in over adjusting a process. This over adjustment, known as tampering, increases the variation in the process. The second type of error involves treating special cause variation as common cause variation. This error results in not taking immediate corrective action when necessary. Although both of these types of errors can occur even when using a control chart, they are far less likely.

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Theory of Trade and Investment

Explain theory of Trade and Investment.


Ans. There have been a number of theoretical explanations on international trade and investment.


 Following are the trade theories: 

Classical theory :  there are two classical theories :

(i) Theory of Absolute Cost Advantage : Adam Smith compounded this theory of international trade in 1976.  He was of the opinion that productive efficiency differed among different countries because of diversity in natural and acquired resources possessed by them. The theory explains that a country having absolute cost advantage in the production of a product on the account of greater efficiency should specialize in its production and export.


For example, suppose country ‘A’ produces 1 kg of rice with 10 units of labour or it produces 1 kg of wheat with 20 units of labour.  Country ‘B’ produces the same amount of rice with 20 units of labour and same amount of wheat with 10 units of labour.  Each of countries has 100 units of labour. Equal amount of labour is used for the production of two goods in the absence of trade between them.  But when the trade is possible between two countries, ‘A’ will produce only rice and exchange a part of rice output with wheat from country ‘B’.  Similarly country ‘B’ will do. The total output of both the countries will rise because of trade.

(ii) Theory of Comparative Cost Advantage :  This theory is compounded by David Ricardo.  The theory explains that a country should specialize in the production and export of a commodity in which it possesses greatest relative advantage.  For example, Bangladesh and India, each of the two has 100 units of labour. In Bangladesh, 10 units of labour are required to produce to produce either one kg of rice or one kg of wheat.  On the contrary, in India, 5 units are required to produce one kg of wheat and 8 units are required to produce one kg of rice.


From the viewpoint of absolute cost advantage, there will be no trade as India possesses absolute cost advantage in the production of both the commodities. But Ricardo is of the view that from the viewpoint of comparative cost advantage, there will be trade, because India possesses comparative cost advantage in the production of wheat.  This is because the ratio of cost between Bangladesh and India is 2:1 in case of wheat, while it is 1.25: 1 in case of rice.  Because of this comparative cost advantage, India will produce 20 kg of wheat with 100 units of labour and export apart of wheat to Bangladesh.  On the other hand, Bangladesh will produce 10 kg of rice with 100 units of labour and export apart of rice to India.  The total output of foodgrain in the two rises because of trade.

Govindam Business School


Limitations :   Despite of being simple, the classical theory of international business suffers of following limitations :

(i) It takes into consideration only one factor of production that is labour.  But in real world, there are other factors that play a decisive role in production.

(ii) The theory assumes the existence of full employment, but in practical, full employment is not possible.

(iii)   Theory stress too much on specialization that is expected to improve efficiency.  But it is not always the case in real life.

(iv) Classical economist feel that resources are mobile domestically and immobile internationally.  But neither of the two assumptions is correct

Summary : The Classical theory holds good even today insofar as it suggest how a nation could achieve the consumption level beyond what it would in absence of trade.



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The Unified Theory of Ghana

Ghanamean “warriors king” is locates in West Africa.Ghana was inhabited by pre-colonial time by a number of accident predominantly Akan kingdom. The name Ghanareflects the new nations. Ghanais famous for its cocoa and LakeVoltaartificial lake in the world to visit this entire book a flight to Ghana

Ghanaculture is mix of different ethnic groups .due to this there is a diversity in their art clothing and languages. There are 79 different languages but official language is English for government affairs and also in schools for education. Christianity is the most practiced religion in the region but Islam is also growing very fast in a few northern regions.

After 2010, FIFA world cup Ghanagains a lot of tourist attention and the tourism of Ghanais increase due to this event. Book a cheap flight to Ghana and experience the life of this African country.

There are two main seasons in Ghana the wet and dry seasons northern Ghana experience its rainy season from march to November while the south Flights to Ghana include the capital city Accra experience the season from April to mid November.

Kotoka international airport is inAccra.Taxies are available to connect you to the other part of the city .the lowest fares toGhanaoutsides of Africa are usually fromLondon 

Among the sites equipped for tourists are the slave castles in coastal towns, includingCapeCoast, Elmina and others.

A Trot ride away fromAccraisKakumNational Park, where you can walk the wood-and-rope bridges though the rainforest canopy. A wonderful experience, albeit a bit touristy. Prices have skyrocketed in recent years, but nonetheless it is a great opportunity to see some flora and fauna (if there are not too many tourists, you have a good chance of seeing some monkeys in the tree)

There several safari opportunities inGhana, the cheapest beingMoleNational Park, where you can have a chance to see an elephant while enjoying a beer from your motel room patio. You can organize a multi-day camping trip at reception.

Kakum national park, mole park, nzulero, paga or shai hills reserves are the places to visit inGhana. To experience wildlife monkeys, elephants and antelopes are said to live in this region kakum national park is the right place. To see birds shai hills are the best place a great day trip nearAccrahome to baboons. Parrots and antelopes you can tour the reserve on the horseback.

To experience the beauty of nature immediately book a flight to Ghana for a wonderful journey.

Flights to Ghana has open a new world to me I have seen such an amazing wonderful Cheap Flights to Ghana golden collections of the relish able that enrich my nature to be never lost.

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Accounting theory and practise

The nature of any theory is to provide a logical basis for the practice or procedure to which the theory is applied. Accounting theory has evolved over a long passage of time during which substantial changes in human behaviour and market structures have taken place.

There are two main types of accounting theory that impact the practice of accounting:  Normative theory concerns how things should be done. For example, ideas about the meaning of economic income can influence the way in which regulators decide that accounting systems should measure profit.

In contrast, positive accounting theory tries to explain why things are the way they are. For example, why managers choose a particular accounting method over another, or choose not to invest in research and development activities. For policy-makers to make changes to accounting systems, they not only need to know what they are trying to achieve, they also need to understand why people are currently behaving differently and how any changes will

affect them. They will refer to normative theory for the former, and positive theory for the latter. Positive accounting theory is tested by gathering and analysing data. Usually, researchers either study a single organisation in great depth over a long period of time, or they collect a smaller amount of data about a much larger number of organisations. Analysing a single organisation may mean that the research findings are not generalizable to other organisations. However, analysing a large number of organisations to reach conclusions about the ‘average’ organisation, does not tell very much about individual cases.

Usually financial reporting provides information to users who are not normally involved in actually running the organisation. These users are external to the business. They include actual and potential shareholders, lenders and other investors. They may also include customers, suppliers, the government, and the general public. We have also seen that management use accounting information themselves. Directors, other managers, and employees are internal to the business, and use information to make economic decisions.

External users may wish to make both economic decisions and legal/stewardship decisions

These different types of decisions require different types of information. There is usually a trade-off between:

relevant information that can influence decisions about the future or confirm the outcome of a past transaction, and reliable information that is free from errors and bias and which faithfully represents economic reality. Economic decisions need forward-looking information. This information is unlikely to be reliable as no one has a crystal thought that can predict the future with total accuracy! Legal and stewardship decisions need information about the past. It is usually important that this information is very reliable, as getting it wrong may result in fines and penalties.

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Astrology and karma theory

A right career can set you up nicely for life. And a wrong career path can lead you to lifelong unhappiness. This is a decision that everyone has to take at some point of time in life. It is needless to say that a decision of such importance requires a very careful and well thought judgment. A careful analysis is required in this regard. The analysis has to be thorough as well. It is wise to take all possible parameters into account before going for such an analysis. Based on the analysis, you should figure out your core competence and use it as your competitive advantage to get ahead of others. Your career path should follow your core competence and competitive advantage. Finding out and measuring the influence of planets in your life can help you to make good predictions of your career. It will help you to make the right choice in a number of ways. This article discusses some of the basic astrological stuffs in order to assist you in career prediction. First thing you need to know is the degree of your Sun. It is possible to measure the degree with almost pinpoint accuracy. You have to mark the day in which the Sun moved into your zodiac sign. Then you need to count how many days are left till your date of birth. The number of days remaining will be the degree of your Sun. You must know what is the right time for you to search for jobs. You may rely on the position of planets to determine the proper time for job hunting. You need to make a serious effort in searching jobs during that time. Make sure that you’ve updated your resume in different job sites that you are registered in. Make sure not a single notice is missed in the job searching websites. Many organizations have their own e-recruitment systems in their company websites, so you need to make sure you apply if the right opportunity awaits you. Jupiter symbolizes opportunity and good luck. Saturn resembles just the opposite. Saturn resembles difficulty and hardship. When Saturn is in the same degree with your Sun, it’s time to stop looking for opportunities and concentrate on your current job. During this period of time, you need to take careful measure and take a safe strategy. Uranus transit is full of interesting twists. During this transit, many will find their dream career path. You may be forced out of your current job and find the job of your dream. So make sure you have your senses keen, sharp and open during this transit and be ready to make the ultimate switch of your career. Like the Saturn transit, Neptune transit is also a difficult one. This transit is often deceiving. It will allure you to apparently ideal opportunities. But do not do the mistake to fall in the trap. It’s always wise to keep yourself self during this transit. Lastly, Pluto transit is the time of transformation. It is the high time to show the world what you can accomplish. These are the basics of astrology relevant to career prediction. Make sure you follow them and make the right choice.

There are three types of Karma, Sanchit, Prarabdh and Kriyaman Karma. Sanchit Karma are accumulated Karma of all previous janma. Prarabdh Karma are handful of sanchit good and bad Karma that are ready to give good or bad result in this janma. Kriyaman Karm is the Karm we produce  in present life. Sanchit Karma can be exhausted only by experiencing their good or bad results in the form of pleasure or pain. We can postpone or delay or mitigate sufferings caused by them by doing good karma and following some spiritual practices like Mahamritunjay Jap,Vishnu Sahastranam path, Durga Saptshati path and some dan (donations) etc. If it is possible it is better to do the same by self or can de done on behalf of somebody whose health does not permit him to do so.

It is based on the same principle that if you are hungry you will have to eat  to fill your stomach and  if you assign somebody to eat on your behalf , it will not do. When we do puja for self or our loved ones we  put our whole will power and even though we can devote a little lesser time and could not do so perfectly even then our sincerity is rewarded by God. So, do not fall prey to these cheaters. Astrology is there to guide you in difficult phases of life. It  can boost your morale by letting you know till when your bad phase will last ,when to take a big leap forward and when it is  better to lie  low ! Astrologers can give you spiritual guidance but they  have no magical wand to vanish away all of your  sufferings, only good Karma and spiritual practices can do that.

Astrovalley is an author writes the article about vedic astrology like career astrology. It provide useful information through articles on Career prediction and Career prediction

Simplifying the Elliott Wave Theory

The wave theory was propagated by Ralph Nelson Elliott. He is known as the father of the Wave Theory. Today, it is referred to as the Elliott Wave Principle. He was born in 1871 in Marysville, Kansas. He enjoyed a really long working life in accounting as well as business practices of several companies. At the age of 58, he unfortunately was relegated to the home thanks to an illness. Needing to keep himself occupied, he turned to studying the patterns of the stock market.

Elliott scrutinized annual, monthly, weekly as well as daily, hourly and half-hourly charts of the numerous indexes and went through around 75 years worth of stock market behavior. By the year 1934, he gained enough of confidence in his theory that he made a presentation to Charles J. Collins of Investment Counsel, Inc. in Detroit. And the rest is history.

The Elliott Wave Principle is quite simply an in-depth description of how a number of groups of people tend to behave. It works on the understanding that mass psychology tends to move between pessimism and optimism and then return forming quite a natural sequence. This helps form a specific and measurable pattern.

The most popular of places to implement the Elliott Wave Principle is at the financial markets. Financial markets are the one place where investor psychology is constantly changing and therefore one is able to form a pattern in price movements. Once you are able to recognize these patterns in prices and understand their forms of repetition, you will be able to invest in the right manner.
What the Elliott Wave Principle does is measure investor-based psychology which forms the actual fuelling engine of the financial markets. Every time people are optimistic on an issue, the bidding price goes up. When people are optimistic about the future of a given issue, they bid the price up.

The Elliott Wave Principle can be understood as an exercise dealing in probability. A person who practices the principles of Elliott Wave will be able to recognize the structure of markets and be able to anticipate when the next move is likely to be based depending on current positions that are within those structures. Once you understand the wave patterns you will be able to predict what the market is going to do next as well as not do. When you use the Elliott Wave principle, you find the highest probable moves while assuming the most minimal of risks.

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Modern Portfolio Theory – Basics

MPT is based on the behavior of the investor. The investor may make decision based on the expected return and the riskiness of returns. The higher the level of fluctuations, the higher is the risk. Therefore an investor may not prefer a share having higher level of fluctuations price.  He may prefer a share even with a lower return, if the risk is low. To reduce the risk, an investor may invest in different securities. Loss, if any, in one security will be offset by gain in another.  Portfolio means holding number of securities at a time by an investor. MPT is based upon its analysis on risk and return. When two varieties of securities have got equal risk, an investor may decide in favor of a security which is expected to yield higher return. If such two varieties of securities are expected to yield equal return, an investor may prefer a security having lesser risk. 

Now, to reduce risk, one may invest in more than one security, but one must also limit the diversification. This is because; again risk may be higher when the diversification is very high.  One may also think of holding all variety of securities. Such holdings will be called as market portfolio. The market portfolio is associated with the market risk. This market risk cannot be eliminated through diversification. Overall changes in the market price will have its own effect on a given security. The effect may change the degree of riskiness of a security. This is nothing but sensitivity of one security with reference to the changes in riskiness of other securities in the market.  This is known as the beta co-efficient of the security. That means, the return on a security depends on the risk measured by this beta.  The risk of investment in each security in terms of variations may be calculated in terms of percentage and then one security may be compared with the other. Such comparison may help the investor to decide how much he has to invest and in which security.

The expected return on each security may be arrived by means of weighted average. The comparison of estimation of risk and return of each security will place an investor in a better position to decide the purchase of each quantum of security, or not to make a purchase etc. The important point is that inspite of all such efforts regarding diversified investment one cannot reduce the risk to zero. The reality is that one has to accept the margin of market risk or non-diversifiable risk. The selected number of securities from the different industries is sufficient to analyze a market portfolio. The non-diversifiable risk or market risk may involve with risk associated with the fluctuations in the market index itself. The diversification will not eliminate the market risk. The non-diversifiable risk is also called as unavoidable risk and such risks cannot be diversified, because the entire market will be affected by one factor for e.g., common fiscal policy.

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Fuzzy Set Theory Background

Fuzzy Set Theory (FST) was formalised by Prof. Lofti Zadeh at the University of California in 1965. The significance of fuzzy variables is that they facilitate gradual transition betweenstates and consequently, possess a natural capability to express and deal withobservation and measurement uncertainties.

Traditional variables, which may be referred to as crisp variables do not have this capability. Although the definition of states by crisp sets is mathematically correct, in manycases, it is unrealistic in the face of unavoidable measurement errors. A measurement that falls into a close neighbourhood of each precisely defined border between states of a crisp variable is taken as evidential support for only one of the states, in spite of the inevitable uncertainty involved in decision. The uncertainty reaches its maximum at each border, where any measurement should be regarded as equal evidence for the two states on either side of the border. When dealing with crisp variables, the uncertainty is ignored; the measurement is regarded as evidence for one of the states, the one that includes the border point by virtue of anarbitrary mathematical definition.

Bivalent set theory can be somewhat limiting if we wish to describe a ‘humanistic’ problem mathematically (Zadeh (1987)). For example, Figure 6.2 illustrates bivalent sets tocharacterise the temperature of a room. The limiting feature of bivalent sets is that they are mutually exclusive – it is not possible to have a membership of more than one set. It is not accurate to define a transition from a quantity such as ‘warm’ to ‘hot’. In the real world a smooth (unnoticeable) drift from ‘warm’ to ‘hot’ would occur. The natural phenomenon can be describedmore accurately by FST.

Figure 6.3 shows how the same information can be quantified using fuzzy sets to describe this natural drift. A set, A, with points or objects in some relevant universe, X, is defined as these elements of x that satisfy the membership propertydefined for A. In traditional ‘crisp’ sets theory each element
of x either is or is not an element of A. Elements in a fuzzy set (denoted by –, eg A) can have a continuum of degrees of membership ranging from complete membership to complete non- membership (Zadeh (1987)). /~(x) gives the degree of membership for each element x e X. #(x) is defined on [0,1]. A

membership of 0 means that the value does not belong to the set under consideration. A
membership of 1 would mean full representation of the set under consideration. A membership
somewhere between these two limits indicates the degree of membership. The manner in which
values are assigned to a membership is not fixed and may be established according to the
preference of the person conducting the investigation.

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The theory of running

How to get in touch with your breath? It is still debatable weather the phenomenon like getting one’s breath back really exists. A report by Toy Shepherd says that 20 students took an arduous exercise on the treadmill. Students were enquired by some research workers in the 1-minute break. 18 students’ breath improved and 14 students’ legs relieved. You will go through the stage of getting your breath back and experience it.

You will understand how to run through all kinds of weathers. There are 2 factors you should watch out-heat and moisture} These 2 elements will slow your space, so in August, do not run as in April. Summer-heat and moisture make you uncomfortable. You should try to go for a run early at morning or at sunset.

Summer-heat becomes not so hard since you have been used to the hot weather after running some. But it takes about a week to be adapted to running in the hot absolutely. As for a rainy day, you never have to stop running so long as you follow the suggestion in Chapter 13.

Relaxing exercises are necessary. Do not make a suddenly stop after you finish your running. Spend some time in calming down yourself which involves taking a simple walk or stretching exercises you usually do before running. Doing some stretching exercises is good for the health. Your muscles are warm and soft at that time and it is easy to stretch yourself. Try to calm down your body within 8 to 10 minutes in order to excrete the metabolic wastes from the muscles. Your pulse when you pause should be 20 times no more than that when you do not exercise.

Some runners take a cold bath to alleviate muscle pain especially after a long-distance run. Inflammation and ache can be relieved by taking a cold bath for it can cool down your whole body, not just small scale, immediately. If you can not stand the cold bath, put an ice pack to your painful joint to soothe the injury.

Don’t have meals long after a long run or hard workout. The research indicates that it is the easiest for muscles to rebuild glycogen (stored glucose) within half an hour after exercise. If you eat soon after your workout, you can minimize muscle stiffness and soreness. A good rule of thumb for post-run food is a ratio of 1 gram of protein to 3 grams of carbohydrates and a peanut butter and jelly sandwich or a smoothie made with fruit and yogurt is a good choice. Make sure that you’re hydrating properly after running, especially in the summer months. Plain water is fine for re-hydrating after your run. While some runners prefer recovery drinks, such as chocolate milk in place of a post-run snack.

How to protect your feet? You’d better run on a softer field but not a hard one, a playground with track is a better choice. Foot bath with hot water has many advantages as it is beneficial to both your morning exercise the next day and fatigue alleviation and you’d better at least take it after running and before sleep.

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The Theory of Limitations

The Theory of Constraints


The theory of thinking was propagated by Eliyahu Goldratt in one of his book The Goal as “the theory of constraints.” Having read and gone through several times, I will try to pen down the way I have understood. It is one of the finest concepts.


This theory states that between you and anything you want to accomplish in life there is a constraint, limiting factor or an impediment that determines how fast you get to where you want to go.


For example, if you are driving down a freeway and traffic construction is narrowing all the vehicles into a single lane, this bottleneck or choke up point becomes the constraint for the person who drives his vehicle & also determines how fast you will negotiate to get to your destination. The speed at which you pass through this bottleneck will largely determine the speed of your entire journey.


In accomplishing any major accomplishments, there is always a constraint or a bottleneck which determines how well you negotiate & get through as well. Your job is to identify it accurately and then focus all of your energies on alleviating that key constraint. Your ability to remove this bottleneck or deal with this limiting factor can help you to move ahead faster than perhaps any other steps you can take.


The 80 /20 rule applies to the constraints between you and your goals. This rule clearly states that 80 percent of your constraints lie within yourself. Only 20 percent of your constraints will be outside of yourself, contained in other people, situations. To put it in other words, it is you personally who is usually the major roadblock that is setting the pace at which you achieve any goal that you set for yourself.


For most of us, this is extremely hard to accept. But successful people are more concerned with what is right rather than who is right. Successful people are more concerned with the truth of the situation and what they can do to solve the problems, than they are with protecting their egos.


Thus, most of the obstacles which you face while achieving your goals are mental. They are psychological and emotional in character. They are within yourself rather than within the situation around you. And it is with these mental obstacles that you must begin if you want to achieve everything that is possible for you.


The author of this write up is Iyer Subramanian. Presently, attached to Employers’ Federation of India.  

My name is Iyer Subramanian. My qualifications are as under. Bachelor of Arts, Diploma in Personnel Management and Industrial Relations, Diploma in Labor Laws & Labor Welfare, Diploma in HRM, Diploma in Training & Development. I have around 25 years of experience in HR and write for Express Hospitality, Hospitalitybiz, Business Manager regularly on HR.