Explore BrainMass

Explore BrainMass

    ARCO key :P chart

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com December 24, 2021, 6:14 pm ad1c9bdddf
    https://brainmass.com/business/upper-and-lower-bounds-of-options/arco-key-p-chart-99646

    Attachments

    Solution Summary

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

    $2.49

    ADVERTISEMENT