An insurance company wants to design a control chart to monitor whether insurance claim forms are being completed correctly. The company intends to use the chart to see if improvements in the design of the form are effective. To start the process, the company collected data on the number of incorrectly completed claim forms over the past 10 days. The insurance company processes thousands of these forms each day, and due to the high cost of inspecting each form, only a small representative sample was collected each day. The data and analysis are shown in Exhibit 13.6.

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exhibit 13.6 Insurance Company Claim Form NUMBER OF FORMS NUMBER COMPLETED INCORRECTLY FRACTION SAMPLE INSPECTED DEFECTIVE 300 10 0.03333 0.02667 300 3 300 0.03000 4 300 13 0.04333 300 0.02333 300 0.02333 300 6 0.02000 0.03667 300 11 300 12 0.04000 10 300 0.02667 8. Totals 3,000 0.03033 91 Sample standard deviation 0.00990 0.06500 0.06000 0.05500 0.05000 0.04500 0.04000 0.03500 0.03000 0.02500 0.02000 0.01500 Sample Upper control limit Lower control limit 0.01000 0.00500 0.00000 1 2 3 4 5 6 7 8 9 1 0