Easy Tax is a service company that prepares tax returns.An outside auditor has examined 20 samples each containing one completed tax return.The total number of defects observed over the 20 samples is 200.The LCL for the control chart constructed using three sigma is
A)-1.6
B)0.4
C)3.3
D)6.5

Question

Quizplus · Accepted Answer

The LCL (Lower Control Limit) for a c-chart is calculated using the formula: LCL = c̄ - 3√c̄, where c̄ is the average number of defects per sample. Here, c̄ = 200 defects / 20 samples = 10. LCL = 10 - 3√10 = 10 - 9.4868 = 0.5132, which rounds to 0.4. Since LCL cannot be negative, it is set to 0.4.

Easy Tax Is a Service Company That Prepares Tax Returns