Calculate the lower and upper control limits, Basic Statistics

Question:

Data entry clerks at ARCO key in thousands of insurance records each day.  They have just completed a new training program and want to establish a control chart based on the results of this training.  Each day random samples of the work of the clerks were collected.  The results are shown in the table below.  Two hundred records were sampled daily and examined for errors.  The number of records with errors was counted.

Day

      Number of Records with Errors

Day

Number of Records with Errors

1

12

11

12

2

8

12

10

3

4

13

8

4

6

14

10

5

8

15

10

6

8

16

8

7

6

17

10

8

6

18

11

9

2

19

9

10

4

20

8

a) You want to set control limits for the proportion of records with errors.  Assume that the past twenty days performance is adequate for establishing the control limits and performing the analysis.  Using 95% control limits, what are the upper and lower control limits for the proportion of records with errors?  Calculate your proportion defective and the lower and upper control limits to 3 decimal places (0.xxx).

b) Plot the control chart and the sample values.

c)  What would you conclude about the process, in other words, is the process in control?  Explain your decision.

d)  Suppose the industry's lower and upper control limits are 0.020 and 0.050 respectively.  What can this insurance company conclude about its process relative to the industry standards?

Posted Date: 2/18/2013 12:57:23 AM | Location : United States







Related Discussions:- Calculate the lower and upper control limits, Assignment Help, Ask Question on Calculate the lower and upper control limits, Get Answer, Expert's Help, Calculate the lower and upper control limits Discussions

Write discussion on Calculate the lower and upper control limits
Your posts are moderated
Related Questions
Refund can be defined as return of a part of a purchase price by a seller to a buyer, usually on a purchase of a specified quantity or a value of goods within a specified period.

Consider the sample data for plants A, B, C & D of the above company, which are tabulated in table 1. Test whether the four means are equal at the 5% level of significance. Perform

The quick method for a confidence interval for a proportion uses p ±1/√n as an approximation for a 95% confidence interval.  The margin of error in this case is slightly larger tha

free hand curve to measure secular trend

importance of time series analysis?

In 2009, the average number of runs scored in the National League was approximately 4.5 per team. Therefore, a team has done an adequate job with its offense if it scores at least

what are the statistics hypotheses for bartlett''s test for exponential distribution?

prepare an estimate of working capital requirements from the following information 1. project annual sales 1,00000/- 2. selling price Rs. 8/unit 3.percentage of net profit on sale

How many different starting lineups of 5 basketball players can be chosen from a squad of 13 players?