Purchase Solution

ARCO key :P chart

Not what you're looking for?

Ask Custom Question

Data entry clerks at ARCO key in thousands of insurance records each day. 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
1 12
2 10
3 0
4 2
5 8
6 4
7 10
8 6
9 6
10 4
11 12
12 2
13 16
14 14
15 10
16 8
17 22
18 6
19 0
20 8

a) You want to set control limits for the proportion of records with errors. Using 99.7% control limits, what are the upper and lower control limits for the proportion of records with errors? Calculate your results to 2 decimal places.

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 0.04 and 0.08 respectively. What can this insurance company conclude about its process relative to the industry standards?

Attachments
Purchase this Solution

Solution Summary

This posting contains solution to following problem on p-chart.

Purchase this Solution


Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.