A company wants to design a control chart to monitor whether loan application forms are being...

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A company wants to design a control chart to monitor whether loan application forms are being completed correctly. The company inspected 500 forms each day and collected data on the number of incorrectly completed forms over the past 12 days: 3 4 5 6 78 9 10 11 12 Day 1 2 X 9 11 3 12 6 10 8 9 15 9 20 10 (X is the number of incorrectly completed forms) 1. For this case, what is the item to be controlled? What type of control chart should be used? Why? [3 marks] 2. Construct the control chart based on three-sigma limits. Is the process in control? What conclusion can you draw based on the control chart? [9 marks] A company wants to design a control chart to monitor whether loan application forms are being completed correctly. The company inspected 500 forms each day and collected data on the number of incorrectly completed forms over the past 12 days: 3 4 5 6 78 9 10 11 12 Day 1 2 X 9 11 3 12 6 10 8 9 15 9 20 10 (X is the number of incorrectly completed forms) 1. For this case, what is the item to be controlled? What type of control chart should be used? Why? [3 marks] 2. Construct the control chart based on three-sigma limits. Is the process in control? What conclusion can you draw based on the control chart? [9 marks]