A bank processes application forms for credit cards. Each week an internal auditor examines a sample...
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A bank processes application forms for credit cards. Each week an internal auditor examines a sample of 58 forms to look for errors. The finance depart goal is to have at most 3 errors per sample, but last year the average was 15. The bank wants to keep an eye on the average number of errors per form. What will be the upper controllimit for its control chart? Median (x-) chart using R • Looks for change in the median - When do we care about medians? • x tilde R median of one sample ● range of one sample size of each sample n ● • x tilde bar average of medians • R bar average of ranges A₂ tilde parameter from table UCL = x + A₂R LCL = X-A₂R n 2 3 4 5 6 7 8 9 ceny Azt 1.880 1.187 0.796 0.691 0.548 0.508 0.433 0.412 A bank processes application forms for credit cards. Each week an internal auditor examines a sample of 58 forms to look for errors. The finance depart goal is to have at most 3 errors per sample, but last year the average was 15. The bank wants to keep an eye on the average number of errors per form. What will be the upper controllimit for its control chart? Median (x-) chart using R • Looks for change in the median - When do we care about medians? • x tilde R median of one sample ● range of one sample size of each sample n ● • x tilde bar average of medians • R bar average of ranges A₂ tilde parameter from table UCL = x + A₂R LCL = X-A₂R n 2 3 4 5 6 7 8 9 ceny Azt 1.880 1.187 0.796 0.691 0.548 0.508 0.433 0.412
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Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
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