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Clerks at a large mortgage processing company have historically been observed to experience an 8% defect rate on the mortgages that they process. Using p-chart formulas, what are the upper and lower control limits for the defect rate that would be obtained by observing a sample of 100 mortgages?
Upper limit is about 10% and Lower limit is about 2%
Upper limit is about 12% and Lower limit is about 1%
Upper limit is about 16% and Lower limit is zero
Upper limit is about 18% and Lower limit is zero
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