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 upper control limit for Nels's p chart is ___________.
A) 0.1736
B) 0.1465
C) 0.1312
D) 0.0940
E) 0.1845

Question

Quizplus · Accepted Answer

The upper control limit (UCL) for a p chart is calculated using the formula: UCL = 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. Substituting the given values: UCL = 0.08 + 3 * sqrt[(0.08(1-0.08))/150] = 0.1465.

Nels Neugent,Purchasing Manager at Mid-West Medical Center,is Designing a P