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

Peanuts and cost accounting, EFF EX: Joe, you said you put in these peanuts...

EFF EX: Joe, you said you put in these peanuts because some people ask for them, but do you realise what this rack of peanuts is costing you? JOE: It ain''t gonna cost. ''sgonna be

Four characteristics and functions of statistics, highlight four characteri...

highlight four characteristics and four functions of statistics

Calculate the average account balance, In June 2009, the average Australian...

In June 2009, the average Australian credit card account balance was $3,127, according to data extracted Assuming that these balances are approximately Normally distributed with a

Question from inventory, CASE STUDY 1 3 MARKS An audit of the...

CASE STUDY 1 3 MARKS An audit of the accounting records of Loch Ness Ltd. for the year ending 30 June 2012 discovered that the ending inventory balance

Describe sample space for experiment, The elevator in the Math and Computer...

The elevator in the Math and Computer Building can stop at one of six ?oors. Four riders get on the elevator at the ?rst ?oor and the elevator heads up. Each rider picks a ?oor at

Binomial probability distribution, if the probability of getting caught cop...

if the probability of getting caught copying someone else s exam is 0.2 find the probability of not getting caught in 3 attempts assume independence

Collection of information, This methods implies the collection of inform...

This methods implies the collection of information by way of investigator own observation without interviewing the respondents. While the observational methods may be suitabl

General linear regression model, find the variance of least square estimato...

find the variance of least square estimator beta hat for general linear regression model

Capital grants, Capital grants Grants that are restricted for the acquisit...

Capital grants Grants that are restricted for the acquisition: structure: renewal of capital assets associated with an accurate program, Refer to GRANTS & OPERATING GRANTS

Logistic regression model, Model 1:  Let's consider the logistic regression...

Model 1:  Let's consider the logistic regression model, which we will refer to as Model 1, given by log(pi / [1-pi]) = 0.25 + 0.32*X1 + 0.70*X2 + 0.50*X3

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