Question: 21. Processing Insurance Claims. An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes

21. Processing Insurance Claims. An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.

a. When the process is in control, the proportion of claims with an error is .033.

A p chart has LCL = 0 and UCL = .068. Plot the following seven sample results:

.035, .062, .055, .049, .058, .066, and .055. Comment on whether there might be concern about the quality of the process.

b. An x chart for the mean processing time has LCL = 22.2 and UCL = 24.5. The mean is m = 23.35 when the claim process is in control. Plot the following seven sample results: 22.4, 22.6, 22.65, 23.2, 23.4, 23.85, and 24.1. Comment on whether there might be concern about the quality of the process.

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