What factors would influence selection of type i error rate

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Consider given Exercise. under the assumption that the complication rate is 0.1%. If you were to construct a p-chart using two-sided 3σ limits, what would the minimum sample size be to detect an improvement in the process?

Exercise
The number of heart surgery complications is rare. To monitor the effectiveness of such surgeries, data are recorded on the number of such procedures until a complication occurs. These complications occur independently with a constant probability of occurrence and follow a geometric distribution. Table shows such data for a sequence of 25 complications. It is estimated from past data that the complication rate is 0.1%.

Construct an appropriate control chart and comment on the process assuming a type I error rate of 0.005. What would the control limits be for a type I error rate of 0.05? What factors would influence your selection of the type I error rate?

Complication Sequence

Number of Procedures

Complication Sequence

Number of Procedures

Complication Sequence

Number of Procedures

1

654

10

1654

18

1794

2

981

11

892

19

1112

3

1508

12

750

20

652

4

436

13

1333

21

1050

5

1202

14

1404

22

1085

6

889

15

909

23

1422

7

1854

16

822

24

688

8

3068

17

1609

25

1095

9

704

 

 

 

 

Reference no: EM131384775

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