The following data sets were presented to top management.

To determine which problem area should be targeted for improvement first, we need to consider both the dollar savings and the probability of success. Calculating the expected savings (dollar savings multiplied by the probability of success) for each problem area gives us a clear picture:

A: 100,000 * 0.15 = 15,000

B: 92,000 * 0.30 = 27,600

C: 84,000 * 0.20 = 16,800

D: 72,000 * 0.33 = 23,760

Problem Area B has the highest expected savings (27,600), making it the best target for initial improvement efforts based on the given data. References:

Quality Management for Organizational Excellence by David L. Goetsch and Stanley Davis.

ASQ Certified Manager of Quality/Organizational Excellence Handbook.