Using samples of 500credit card statements, an auditor found the following: Use Table-A. Sample 1 2 3 4 Number with errors 5 3 6 9 a. What is the 3 sigma control limit for this process
Number of errors | Error proportion | ||
5 | 5/500 = 0.01 | ||
3 | 0.006 | ||
6 | 0.06 | ||
9 | 0.09 |
Mean of errors = Sum of error propotions / 4 = 0.0415
Std deviation of proportions = sqrt { Mean of proportion * (1- Mean of proportion}/n } = sqrt{ (0.0415) * (1-0.0415) / 500 } = 0.0087
Three sigma control process = Mean + / - Z*Std deviation
Z= 3
UCL = 0.0415 + 3*0.0087 = 0.676
LCL = 0.0415 - 3*0.0087 = 0.0154
Using samples of 500credit card statements, an auditor found the following: Use Table-A. Sample 1 2...
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