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 expected ratio, 1. Cross BBGG X bbgg. Assume B and G are l...

1. Cross BBGG X bbgg. Assume B and G are linked together on an autosome. Show F2 and give expected results. 2. Cross BBGG x bbgg. Assume B and G are not linked. Show F2 an

Cash equivalent., Cash equivalent Short-term: highly liquid investments th...

Cash equivalent Short-term: highly liquid investments that are together [1) readily convertible to known amounts of cash & [2) so close to their maturity that they there insignifi

Normal distribution, In a sample of 120 workers in a factory, the mean and ...

In a sample of 120 workers in a factory, the mean and standard deviation of wages were Rs. 11.35 and Rs.3.03 respectively. Find the percentage of workers getting wages between Rs.9

Ploblem, free hand curve to measure secular trend

free hand curve to measure secular trend

Calculate total rate, A psychologist developed a test designed to help pred...

A psychologist developed a test designed to help predict whether production-line workers in a large industry will perform satisfactorily. A test was administered to all new employe

Proton-electron hypothesis, Proton-electron hypothesis: this was put forwar...

Proton-electron hypothesis: this was put forward in the year 1930 to account for the emission of alpha and beta particles from the nuclei of radioactive elements. The positive char

Hypothesis testing, a clinical psychologist claims that on average, at leas...

a clinical psychologist claims that on average, at least twenty five clients visit her per week. for a random sample of 8 weeks, the following numbers of clients were recorded; 25

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