Use the information from Table 6.3.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

Quizplus · Accepted Answer

Using the information from Table 6.3, when z = 2 and a sample size of 100, the value of A2 is 0.577. The formula for calculating the upper control limit is:
UCL = x̄ + z(A2/Rbar)
Plugging in the values, we get:
UCL = 0.04 + 2(0.577/0.02)
UCL = 0.04 + 57.7
UCL = 57.74
Therefore, the upper control limit is greater than 0.04 but less than or equal to 0.06. The best choice is C.

Use the Information from Table 6