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A payment process that reimburses members for out-of-network health expenses is to be controlled through use of a fraction nonconforming chart. Initially, one sample
A payment process that reimburses members for out-of-network health expenses is to be controlled through use of a fraction nonconforming chart. Initially, one sample of size 200 is taken each day for 20 days, and the total of nonconforming units is as follows. 20 D = = 100 (a) Establish a control chart to monitor future performance. (b) What is the smallest sample size that could be used for this process and still give a positive lower control limit on the chart? (c) What is the probability that a shift in the process fraction nonconforming to 0.03 will be detected on the first sample? (d) Find the ARL when the process fraction nonconforming is 0.03. Interpret.
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a To establish a control chart we will use a fraction nonconforming chart The formula for the fraction nonconforming is Fraction Nonconforming Total N...Get Instant Access to Expert-Tailored Solutions
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