Using samples of 194 credit card statements, an auditor found the following: Use

Question

Using samples of 194 credit card statements, an auditor found the following: Use Table-A Sample Number with errors 5 3 4 10 1 2 34 a. Determine the fraction defective in each sample. (Round your answers to 4 decimal places.) Sample Fraction defective . 0258 .0155 .0206 .0515 b.lf the true fraction defective for this process is unknown, what is your estimate of it? (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Estimate | 230% c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for samples of this size? (Round vour intermediate calculations and final answers to 4 decimal places.)

Explanation / Answer

c. standard deviation = [ (pbar) ( 1-pbar) /n]1/2

= [ 0.0283 ( 1-0.0283)/194]1/2

= 0.0119

d. Limits

0.0283 +- 2.17 x 0.0119

UCL= 0.05412

LCL =0.00247

e.

0.0470 = 0.0283 + z x 0.0119

z= 1.57

alpha risk = 0.116

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