Answered: Using a p-chart, what are the upper and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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You work for Raider Data Systems where thousands of insurance records are entered by clerks each day for a variety of client firms. You are in charge of setting control limits to include 99.73% of the random variation in the data entry process when it is in control. Samples that you collected from 20 employees are shown below. You carefully examine 100 records entered by each employee and count the number of errors entered by each clerk. You also compute the proportion defective in each sample. Using a p-chart, what are the upper and lower control limits?

Sample	Errors Made	Proportion Defective
1	4	0.04
2	5	0.05
3	6	0.06
4	3	0.03
5	8	0.08

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