Calculate the lower and upper control limits, Basic Statistics

Assignment Help:

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?


Related Discussions:- Calculate the lower and upper control limits

Vital statistics, How vital statistics are affect on human life

How vital statistics are affect on human life

Management accounting, Q. CRSL has a large auditorium which can cater for ...

Q. CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Sea

#mode, how to find mode graphically when the biggest rectangle is at the en...

how to find mode graphically when the biggest rectangle is at the end

Rejection of null hypothesis - testing of hypothesis, Two researchers test ...

Two researchers test the same hypothesis. Researcher A rejects the null hypothesis and researcher B fails to reject the null hypothesis.  Discuss three reasons that could cause the

Estimate the variables-statistically significant, The dataset also contains...

The dataset also contains a variable y , which is the dependent variable of interest, as well as x1 , x2 , x3 , x4 , x5 , and x6 , all explanatory variables that are potentially

find the standard deviation, Research Question: Percentage of student...

Research Question: Percentage of students who drank a can, bottle, or glass of soda or pop (not including diet soda or diet pop) at least 1 time per day during the seven days

calculate the chi-square statistic, The table below shows a breakdown of w...

The table below shows a breakdown of women between the ages of 20 to 64 who have had a Pap smear--it shows the number in each age group cross tabulated with the time of their last

Calculate the probability of coin, Q1. If you throw a coin 5 times, what is...

Q1. If you throw a coin 5 times, what is the probability of: - throwing 5 heads - throwing 4 tails - throwing 3 heads and 2 tails Q2. Construct a tree diagram to verify your ans

What is cash flow net of tax, What is cash flow net of tax? I view inco...

What is cash flow net of tax? I view income net of tax as the money spent without the earnings tax savings when the quantity is insurance deductible on the corporation’s earnin

Decision tree, how do I answer: with the aid of a decision tree prepare a q...

how do I answer: with the aid of a decision tree prepare a quantitative report advising the company on the optimal course of action. (use a time horizon of 6years and ignore the ti

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd