A manufacturing process produces computer chips in batches of 100.The firm believes that the percent of defective computer chips is 2%.If in five batches the percent defective were 3%,8%,1%,2%,and 7%,how many of these fell outside of the upper or lower control limits for the proportion of defective computer chips in a batch?
A)0
B)1
C)2
D)3

Question

Quizplus · Accepted Answer

The control limits for a proportion are calculated using the formula: p ± 3√(p(1-p)/n), where p is the average proportion defective (0.02) and n is the batch size (100). The control limits are approximately 0.02 ± 0.0346, or between -0.0146 and 0.0546. The batches with 8% and 7% defectives fall outside this range.

A Manufacturing Process Produces Computer Chips in Batches of 100