Question
An insurance company wants to design a control chart to monitor whether insurance claim forms are being completed correctly. The company intends to use the
An insurance company wants to design a control chart to monitor whether insurance claim forms are being completed correctly. The company intends to use the chart to see if improvements in the design of the form are effective. To start the process, the company collected data on the number of incorrectly completed claim forms over the past ten days. The insurance company processes thousands of these forms daily, and due to the high cost of inspecting each form, only a small representative sample was collected daily. The data is shown in the following table. Sample 1 2 3 4 5 6 7 8 9 10 Nos Inspected 300 300 300 300 300 300 300 300 300 300 No of the forms were completed incorrectly 10 8 9 13 7 7 6 11 12 8 Design a suitable control chart that can be used by the insurance company using three-sigma (standard deviation) limits and examine whether the process is in control or out of control
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