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Fve data entry operators work at the data processing department of the Binmingha

ID: 412354 • Letter: F

Question

Fve data entry operators work at the data processing department of the Binmingham Bank. Each day for 30 days, the number of defective records in a sampla of 350 records typed by these operators has been noted, as follows: Sample No. Sample No. Sample Defectives No Defectives eNo Deectives 18 10 10 15 16 17 18 19 20 25 26 27 12 15 19 15 13 12 30 a) Establish 3o upper and wer contral limits UCL,-- ](enter your response “·number between 0 and 1 rounded to three decrmsi pieces). L CLp = enfer your respons a5 a number between 0 and 1, rounded to three dec-ral places b) Why can the lower control limit not be a negative number? O A. O B. ° C. Since the percent of defective records cannot be a negative number. Since the percent of defective records is always a positive number Since th upper control limit cannot be a negative number upper control limit is positive. D. Since the c) The industry standard for the upper control limit is D.10. What daes this imply about Birmingham Bank's own standards? The industry standard is the standard at Birmingham Bank.

Explanation / Answer

sample no

no defectives (np)

sample size (n)

Fraction defective (p=np/n)

1

6

350

0.0171

2

5

350

0.0143

3

20

350

0.0571

4

10

350

0.0286

5

10

350

0.0286

6

9

350

0.0257

7

12

350

0.0343

8

8

350

0.0229

9

6

350

0.0171

10

12

350

0.0343

11

5

350

0.0143

12

5

350

0.0143

13

16

350

0.0457

14

5

350

0.0143

15

10

350

0.0286

16

9

350

0.0257

17

11

350

0.0314

18

4

350

0.0114

19

19

350

0.0543

20

15

350

0.0429

21

18

350

0.0514

22

13

350

0.0371

23

5

350

0.0143

24

7

350

0.0200

25

12

350

0.0343

26

11

350

0.0314

27

15

350

0.0429

28

6

350

0.0171

29

13

350

0.0371

30

2

350

0.0057

total

299

10500

0.854286

p bar = np/ n

p bar = 299/10500

p bar =

0.03

(no. of samples, k=30 samples)

n bar = n / k

n bar = 10500/30

n bar =

350

UCLp = p bar + 3 [(p bar(1-p bar))/n bar]

UCLp = 0.03+3*(0.03*(1-0.03))/350)

UCLp

0.055

LCLp = p bar - 3 [(p bar(1-p bar))/n bar]

LCLp = 0.03-3*(0.03*(1-0.03))/350)

LCLp

0.002

b. Lower control limit cannot be negative as the percent of defective records cannot be a negative number.

ans. : A.

c. Birmingham bank's UCL = 0.0551, or 0.1 if we round it off to 1 decimal place. Hence, the bank's UCL is equal to the industry standard.

The industry standard is EQUAL TO the standard at Birmingham Bank.

sample no

no defectives (np)

sample size (n)

Fraction defective (p=np/n)

1

6

350

0.0171

2

5

350

0.0143

3

20

350

0.0571

4

10

350

0.0286

5

10

350

0.0286

6

9

350

0.0257

7

12

350

0.0343

8

8

350

0.0229

9

6

350

0.0171

10

12

350

0.0343

11

5

350

0.0143

12

5

350

0.0143

13

16

350

0.0457

14

5

350

0.0143

15

10

350

0.0286

16

9

350

0.0257

17

11

350

0.0314

18

4

350

0.0114

19

19

350

0.0543

20

15

350

0.0429

21

18

350

0.0514

22

13

350

0.0371

23

5

350

0.0143

24

7

350

0.0200

25

12

350

0.0343

26

11

350

0.0314

27

15

350

0.0429

28

6

350

0.0171

29

13

350

0.0371

30

2

350

0.0057

total

299

10500

0.854286

p bar = np/ n

p bar = 299/10500

p bar =

0.03

(no. of samples, k=30 samples)

n bar = n / k

n bar = 10500/30

n bar =

350

UCLp = p bar + 3 [(p bar(1-p bar))/n bar]

UCLp = 0.03+3*(0.03*(1-0.03))/350)

UCLp

0.055

LCLp = p bar - 3 [(p bar(1-p bar))/n bar]

LCLp = 0.03-3*(0.03*(1-0.03))/350)

LCLp

0.002