Representatives of the Patriot Insurance Company take medical information over the telephone from prospective policy applicants prior to a visit to the applicant’s place of residence by a registered nurse who takes vital sign measurements. When the telephone interview has incorrect or incomplete information, the entire process of approving the application is unnecessarily delayed and has the potential of causing loss of business. The following data were collected to see how many applications contain errors. Each sample has 200 randomly selected applications.

a. What are the upper and lower control limits of a p-chart for the number of defective applications? Use z = 3.
b. Is the process in statisticalcontrol?

  • CreatedNovember 07, 2013
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