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

Current Liabilities and Payroll , Prior to the last payroll period of the c...

Prior to the last payroll period of the calendar year, the cumulative earnings of Employer A were $105000. The earnings for the last payroll period of the year which will be paid o

State income tax, State income tax In most declares paycheck accounting...

State income tax In most declares paycheck accounting will involve a condition earnings tax. In those declares a company is necessary to hold the condition earnings tax that an

Predictive Sales Report, A retail store has recently hired you as a consult...

A retail store has recently hired you as a consultant to advise on economic conditions. One important indicator that the retail store is concerned about is the unemployment rate.

Index nos, why indux number considerd as an economic barrometer

why indux number considerd as an economic barrometer

Explain what is signal reliability ration, A. If CD players are able to use...

A. If CD players are able to use the LDD strategy better than pure chance then explain what happens to the signal reliability ration as a CD player detects more cautiously B. As

Cost accounting, Job Order Gosting ln an attempt to conceal a thefi of fund...

Job Order Gosting ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion lef

Estimate of the population mean time, The average cost per night of a hotel...

The average cost per night of a hotel room in New York City is $273 (SmartMoney, March 2009). Assume this estimate is based on a sample of 45 hotels and that the sample standard

Hitorigrams, difference between historigrams and histogram

difference between historigrams and histogram

Management accounting 2, foster company makes 20000 units per year that in ...

foster company makes 20000 units per year that in uses in products it manufactures

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