Credit card statements-control limits would give alpha risk

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Reference no: EM131145908

Use samples of 194 credit card statements, an auditor found the following: Use Table - A Sample 1 2 3 4 Number with errors 3 2 5 11 a. Determine the fraction defective in each sample. (Round your answers to 4 decimal places.) Sample Fraction defective 1 2 3 4 b.If the true fraction defective for this process is unknown, what is your estimate of it? (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Estimate % c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for samples of this size? (Round your intermediate calculations and final answers to 4 decimal places.) Mean Standard deviation d. What control limits would give an alpha risk of .03 for this process? (Round your intermediate calculations to 4 decimal places. Round your "z" value to 2 decimal places and other answers to 4 decimal places.) z = , to e. What alpha risk would control limits of .047 and .007 provide? (Round your intermediate calculations to 4 decimal places. Round your "z" value to 2 decimal places and "alpha risk" value to 4 decimal places.) z = , alpha risk = f. Using control limits of .047 and .007, is the process in control? no yes g. Suppose that the long-term fraction defective of the process is known to be 2 percent. What are the values of the mean and standard deviation of the sampling distribution? (Round your intermediate calculations and final answers to 2 decimal places.) Mean Standard deviation h. Construct a control chart for the process, assuming a fraction defective of 2 percent, using two-sigma control limits. Is the process in control? Yes No

Reference no: EM131145908

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Credit card statements-control limits would give alpha risk : Use samples of 194 credit card statements, an auditor found the following: Use Table - A Sample 1 2 3 4 Number with errors 3 2 5 11 a. Determine the fraction defective in each sample. What control limits would give an alpha risk of .03 for this proce..

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