Question

The defect rate for data entry of insurance claims has historically been about 1.5%.

a) What are the upper and lower control chart limits if you wish to use a sample size of 100 and 3-sigma limits?
b) What if the sample size used were 50, with 3s ?
c) What if the sample size used were 100, with 2s ?
d) What if the sample size used were 50, with 2s ?
e) What happens to ns p when the sample size is larger?
f) Explain why the lower control limit cannot be less than 0.

Answer 1

The answer and procedures of the exercise are attached in the following images

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3 single sheets with the formulas indications.