Using samples of 196 credit card statements, an auditor found the following: Use Table-A.

Sample	1	2	3	4
Number with errors	3	2	6	8

Click here for the Excel Data File

a. Determine the fraction defective in each sample. (Round your answers to 4 decimal places.)

b. If the true fraction defective for this process is unknown, what is your estimate of it? (Round your answer to 1 decimal place.)

c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for samples of this size? (Round your intermediate calculations and final answers to 4 decimal places.)

d. What control limits would give an alpha risk of .03 for this process? (Round your intermediate calculations to 4 decimal places. Round your "z" value to 2 decimal places and other answers to 4 decimal places.)

e. What alpha risk would control limits of .0470 and .0014 provide? (Round your intermediate calculations to 4 decimal places. Round your "z" value to 2 decimal places and "alpha risk" value to 4 decimal places.)

f. Using control limits of .0470 and .0014, is the process in control?

multiple choice 1

yes

no

g. Suppose that the long-term fraction defective of the process is known to be 2 percent. What are the values of the mean and standard deviation of the sampling distribution? (Round your intermediate calculations and final answers to 2 decimal places.)

h. Construct a control chart for the process, assuming a fraction defective of 2 percent, using two-sigma control limits. Is the process in control?

multiple choice 2

Yes

No