Problem 10-5 (Algo) Using samples of 196 credit card statements, an auditor found the following: Use Table-A.   Sample 1 2 3 4 Number with errors 4 3 6 9     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 .0092 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 .0092, is the process in control?   multiple choice 1 yes Correct 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 Correct

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Problem 10-5 (Algo)

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

Sample 1 2 3 4
Number with errors 4 3 6 9
 

 

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 .0092 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 .0092, is the process in control?
 

multiple choice 1

  • yes Correct
  • 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 Correct


 

 
 
 
 
 
 
 
 
 
 
Expert Solution
Step 1

Given data: 

Sample 1 2 3 4
Number of error 4 3 6 9
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.