Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
Using samples of 197 credit card statements, an auditor found the following:
Sample 1 3 errors
Sample 2 3 errors
Sample 3 5 errors
Sample 4 9 errors
1. what alpha risk would control limits of .0470 and .0038 provide?
2. Using control limits of .0470 and .0038, is the process in control?
3. Construct a control chart for the process, assuming a fraction defective of 2 percent, using two-sigma control limits. Is the process in control?
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