Question

Twenty-five samples, each consisting of 150 loan applications at a bank resulted in a total of 22 applications that had some type of error.

Round your answer to 5 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers.

Sample size is ______

Number of samples is .________

When constructing a p chart the center line should be .________

ESD(p) equals ._______

The upper control limit (UCL) should be .________

The lower control limit (LCL) should be ________

Answer 1

TOTAL DEFECTS = 22
1. SAMPLE SIZE = 150
2. NUMBER OF SAMPLES = 25
Z = 3

3. P-BAR = TOTAL DEFECTS / (SAMPLE SIZE * NUMBER OF SAMPLES) = 22 / (150 * 25) = 0.00587

4. STDEV = SQRT((P-BAR * (1 - P-BAR)) / SAMPLE SIZE = SQRT((0.00587 * (1 - 0.00587)) / 150 = 0.00624

5. UCL = P-BAR + (Z * STDEV) = 0.00587 + (3 * 0.00624) = 0.02459

6. LCL = P-BAR - (Z * STDEV) = 0.00587 - (3 * 0.00624) = -0.01285 SINCE LCL CANNOT BE A NEGATIVE VALUE, LCL = 0

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