Question: The defect rate for data entry of insurance claims has historically been about 1.5%. (a) What are the upper and lower control chart limits if

The defect rate for data entry of insurance claims has historically been about 1.5%.

(a) What are the upper and lower control chart limits if you wish to use a sample size of 100 and 3-sigma limits?

(b) What if the sample size used were 50, with 3σ?

(c) What if the sample size used were 100, with 2σ?

(d) What if the sample size used were 50, with 2σ?

(e) What happens to σp when the sample size is larger?

(f) Explain why the lower control limit cannot be less than 0.


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