Nels Neugent, Purchasing Manager at Mid-West Medical Center, is designing a p chart to monitor the proportion of defective purchase orders issued at Mid-West.He has the proportions defective for 22 samples of purchase orders.Each sample contains 150 purchase orders, and the average proportion defective is 0.08.The lower control limit for Nels's p chart is ___________.
A)0.0447
B)0.0283
C)0.0135
D)0.0000
E)0.5090

Question

Quizplus · Accepted Answer

The lower control limit (LCL) for a p chart is calculated using the formula: LCL = p̄ - z * sqrt[(p̄(1-p̄))/n], where p̄ is the average proportion defective, z is the z-value for the desired confidence level (typically 3 for 99.73% confidence), and n is the sample size. Plugging in the values: LCL = 0.08 - 3 * sqrt[(0.08(1-0.08))/150] = 0.0135.

Nels Neugent, Purchasing Manager at Mid-West Medical Center, Is Designing