The number of late insurance claim payouts per 100 should be measured with a(n)
A) x-bar chart.
B) R-chart.
C) p-chart.
D) c-chart.
E) either a p or c chart.

Question

Quizplus · Accepted Answer

The p-chart is designed to measure the proportion of nonconforming items in a sample, which is exactly what is needed in this scenario. The number of late insurance claim payouts per 100 is a proportion and can be plotted on a p-chart with upper and lower control limits to monitor the process over time. The x-bar chart is used for continuous variables, the R-chart is used for variables with a range or variation, and the c-chart is used for count data, but not appropriate for proportion-based data such as this. Therefore, the best choice is a p-chart.

The Number of Late Insurance Claim Payouts Per 100 Should