Question

An office supply company manufactures paper clips, and even tolerates a small proportion of those paper clips being ‘defective’ (or incorrectly shaped and/or twisted) in its outgoing product. (The company reasons that paper clips are so cheap, users will simply discard the occasional defective paper clip they might find in a box.) The average proportion of ‘defective’ paper clips is known to be 2% when the paper clip manufacturing process is ‘in control’. To monitor this issue, what should be the value of the upper control limit of a p-chart if the company plans to include 25 paper clips in each of its samples and use z-value of 3.0 to construct the chart? g

Answer 1

0.104 (10.4%)

Explanation:

`UCL = \bar{p}+z(\sigma)`

`\sigma = p(1-)) Vn = 1.02(1-202)) 5` = 0.028

`\thereforeUCL = .02+(3x0.028)` = 0.104

`\thereforeUCL`= 10.4%