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

Calculate the npv of machine, Kenneth Su Gold Corp (KSGC) is considering th...

Kenneth Su Gold Corp (KSGC) is considering the purchase of a new piece of machinery. The new machinery would cost $80,000. You are given the following facts: The new machine

Simple random sample, A simple random sample of n = 300 full-time workers i...

A simple random sample of n = 300 full-time workers is selected from a company list containing the names of all n = 5000 full-time workers in order to evaluate job satisfaction. Gi

Vital statistics, various types of measure of fertility

various types of measure of fertility

Statistics question, 1. A sample from 16 different farms across Quebec show...

1. A sample from 16 different farms across Quebec shows that the hay production in bales per acre is normally distributed N(100,50). a. (2p )What is the probability that a random

Spatial ability test and musical ability test, This question has multiple p...

This question has multiple parts. Use the following information to answer the questions below: Spatial Ability Test Musical Ability Test Mean 80 74 Standard Deviation 6

Perform the analysis, Your earlier comparison of three energy technologies ...

Your earlier comparison of three energy technologies showed only a borderline effect using the non-parametric Kruskal-Wallis statistic. This result left you hanging on a decision o

Women tend to work out together, You notice at the gym that it appears more...

You notice at the gym that it appears more women tend to work out together, while more men tend to work out alone.  To show whether this difference is significant, you collect data

Define wages, Define Wages Income is often associated with production wo...

Define Wages Income is often associated with production workers (sometimes referred to as "blue-collar" workers), non-managers, and other workers whose pay is reliant on time wo

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