The defect rate for data entry of insurance claims has historically been about 2

ID: 343807 • Letter: T

Question

The defect rate for data entry of insurance claims has historically been about 2.00%.

This exercise contains only parts a, b, c, d, and e.

a) If you wish to use a sample size of 100, the 3-sigma control limits are:

UCL Subscript pUCLpequals=____

LCL Subscript pLCLpequals=_____

b) If the sample size is 100, the 3sigma control limits are:

UCL Subscript pUCLpequals=________

LCL Subscript pLCLpequals=_____

c) If the sample size is 200, the 2sigma control limits are:

UCL Subscript pUCLpequals=_____

LCL Subscript pLCLpequals=_____

d) If the sample size is 100, the 2sigma control limits are:

UCL Subscript pUCLpequals=______

LCL Subscript pLCLpequals=_____

(a) Here pbar = 0.02

UCL = pbar + 3 [ pbar(1-pbar)/n]1/2 = 0.02+0.042 =0.062

LCL = pbar - 3 [ pbar(1-pbar)/n]1/2 = -0.022

As there is no negative value, it can be considered as 0

(b) The question is same as (a)

UCL = pbar + 2 [ pbar(1-pbar)/n]1/2 = 0.02+ 0.028 = 0.048

LCL = pbar - 2 [ pbar(1-pbar)/n]1/2 = 0.02-0.028 = -0.008 =0

(d) For 2 sigma control limits with a sample size 200

UCL = pbar + 2 [ pbar(1-pbar)/n]1/2 where n =200. is = 0.02+2x 0.009899 = 0.039

LCL = pbar - 2 [ pbar(1-pbar)/n]1/2 = 0.000202

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.