Using samples of 194 credit card statements an auditor, Ask an Expert

Management Studies

Using samples of 194 credit card statements, an auditor found the following:

Sample 1 2 3 4

# with errors 4 6 5 8

a. Determine the fraction defective in each sample

b. If the true fraction of defective for this process is unknown, what is your estimate of it?

c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for this sample size?

d. What control limits would give an alpha risk of 0.03 for this process?

e. What alpha risk would control limits of 0.047 and 0.012 provide?

f. Using control limits of 0.047 and 0.12, is the process in control?

g. Suppose that the long term fraction defective of the process is known to be 2%. What are the values of the mean and the standard deviation of the sampling distribution?

h. Construct a control chart for the process, assuming a fraction defective of 2%, using two-sigma control limits. Is the process in control?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91413214

Have any Question?Write your Review or question?

Related Questions in Operation Management

Have you considered which kinds of businesses or services

Have you considered which kinds of businesses or services get consumers most upset? If you did, you probably noticed that the most upsetting organizations are service firms and government agencies. Some of these include: ...

1 how might a jazz quartet rock band or concert orchestra

1. How might a jazz quartet, rock band or concert orchestra be viewed as a metaphor for a team in a business situation? Perhaps you should observe one or more of these types of groups in action before you reflect on your ...

The motivatorsrewards of profit independence and personal

The motivators/rewards of profit, independence and personal satisfaction are three reasons individuals enter entrepreneurial careers. What problems might be anticipated if an entrepreneur were to become obsessed with one ...

After two months of intense negotiations management and the

After two months of intense negotiations, management and the union have agreed to most of the stipulations in the contract. You are in the latter stages of the bargaining agreement. It is now time to look at the trading ...

1 what is a mentor and how can having a mentor assist you

1) What is a mentor, and how can having a mentor assist you in your job search? 2) How can you utilize professional networks? Provide an example of one of the professional networks in your field. 3) Which type of resume ...

Answer each of the following in 250 words1 describe the

Answer each of the following in 250 words: 1. Describe the stages of the product life cycle. 2. Describe the characteristics of services.

1 what are the consequences of not looking at various

1. What are the consequences of not looking at various perspectives and the interests of other people involved, while making a responsible ethical decision? 2. You are in a line at the bank drive-through and 6 cars are i ...

The employee credit union at state university is planning

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securit ...

Brewery has malt hops and yeast available for brewing there

Brewery has malt, hops and yeast available for brewing. There are 25 pounds of malt, 40 pounds of hops, and the pounds of yeast is 73. Each barrel of Light uses 1 pound of malt, 2 pounds of hops, and 1 pound of yeast. Ea ...

Bell computers purchases integrated chips at 350 per chip

Bell Computers purchases integrated chips at $350 per chip. The holding cost is 35 percent of the unit price per year, the ordering cost is $120 per order and sales are steady at 5,000 per year. The company’s supplier, R ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert