Question
8. Data entry clerks at ARCO key in thousands of insurance records each day. They have just completed a new training program and want to
8. Data entry clerks at ARCO key in thousands of insurance records each day. They have just completed a new training program and want to establish a control chart based on the results of this training. Each day random samples of the work of the clerks were collected. The results are shown in the table below. Two hundred records were sampled daily and examined for errors. The number of records with errors was counted.
Day | Number of Records with Errors | Day | Number of Records with Errors |
1 | 14 | 11 | 12 |
2 | 10 | 12 | 14 |
3 | 6 | 13 | 6 |
4 | 8 | 14 | 12 |
5 | 10 | 15 | 10 |
6 | 10 | 16 | 12 |
7 | 8 | 17 | 12 |
8 | 10 | 18 | 13 |
9 | 6 | 19 | 11 |
10 | 4 | 20 | 12 |
c) What would you conclude about the process, in other words, is the process in control? Explain your decision.
d) To be performing within the industry standard's, the company's daily performance must be within the industry's lower and upper limits which are 0.01 and 0.07 respectively.What can this insurance company conclude about its process relative to the industry standards?
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