$$\begin{array}{l}
\text { Table } 7.3\
\begin{array} { | c | l | }
\hline \text { Sample Number } & \text { Number Defective } \
\hline 1 & 1 \
2 & 4 \
3 & 2 \
4 & 4 \
5 & 0 \
\hline
\end{array}
\end{array}$$
-Use the information from Table 7.3. What is the upper control limit (UCL) if the bank were to use z = 2 and a sample size of 100?
A) less than or equal to 0.02
B) greater than 0.02 but less than or equal to 0.04
C) greater than 0.04 but less than or equal to 0.06
D) greater than 0.06

Question

$$\begin{array}{l}
\text { Table } 7.3\
\begin{array} { | c | l | } 
\hline \text { Sample Number } & \text { Number Defective } \
\hline 1 & 1 \
2 & 4 \
3 & 2 \
4 & 4 \
5 & 0 \
\hline
\end{array}
\end{array}$$
-Use the information from Table 7.3. What is the upper control limit (UCL) if the bank were to use z = 2 and a sample size of 100?
A) less than or equal to 0.02
B) greater than 0.02 but less than or equal to 0.04
C) greater than 0.04 but less than or equal to 0.06
D) greater than 0.06

Quizplus · Accepted Answer

The average proportion defective (p-bar) is 0.022. The standard deviation is calculated as sqrt(p-bar(1-p-bar)/n) = sqrt(0.022*0.978/100) = 0.0147. The UCL is p-bar + z*standard deviation = 0.022 + 2*0.0147 = 0.0514, which falls in the range greater than 0.04 but less than or equal to 0.06.

-Use the Information from Table 7