Using samples of 200 credit card statements, an auditor found the following: Sample 1 2 3...

Question

Question

Using samples of 200 credit card statements, an auditor found the following:

Sample	1	2	3	4	5	6
Number of errors	8	2	9	9	8	4

Determine the 3-sigma UPPER control limit using the data above.

Answer 1

Answer #1

Answer: UCLp= 0.071

Explanation:

Sample	defects	Observations
1	8	200
2	2	200
3	9	200
4	9	200
5	8	200
6	4	200

total	40	1200
steps and formulas, for z=		3
Average Proportion of defects=P	total defects/total observations	0.033
Q=	1-P	0.967
N=	average sample size	200
Standard deviation, Sp	squareroot(P*Q/N)	0.013
UCL=	P + z*Sp	0.071

Answer 2

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