An office supply company manufactures paper clips, and even tolerates a small proportion of those paper clips
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An office supply company manufactures paper clips, and even tolerates a small proportion of those paper clips being defective (incorrectly shaped and/or twisted) in its outgoing product. (The company reasons that paper clips are so cheap, users will simply discard the occasional defective paper clip they might find in a box.) The average proportion of defective paper clips is known to be 2% when the paper clip manufacturing process is in control. To monitor this issue, what should be the value of the upper control limit of a p-chart if the company plans to include 100 paper clips in each of its samples and uses a z-value of 3.0 to construct the chart?
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