Question: An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.

An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.
a. When the process is in control, the proportion of claims with an error is .033. A p chart has LCL = 0 and UCL = .068. Plot the following seven sample results: .035, .062, .055, .049, .058, .066, and .055. Comment on whether there might be concern about the quality of the process.
b. An chart for the mean processing time has LCL = 22.2 and UCL = 24.5. The mean is μ = 23.35 when the claim process is in control. Plot the following seven sample results: 22.4, 22.6, 22.65, 23.2, 23.4, 23.85, and 24.1. Comment on whether there might be concern about the quality of the process.

Step by Step Solution

3.54 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Warning Process should be checked All points are within control ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

995-M-S-N (2930).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!