A manager at ABC Insurance Co. uses a control chart to monitor the daily defect rate for data entry of insurance claims. Suppose that the number of claims processed (and examined by the manager) per day is 200. For a total time span of 30 days, the manager has calculated the overall average daily defect rate as 1.00% = 0.01.

What is the 2-sigma lower control limit of the chart used by the manager?

Note: 1. Enter a number between 0 and 1, after rounding to three decimal places; enter 0 if you get a negative number. For example, if the control limit is 25.1%=0.251, just enter 0.251.

The daily defect rate is defined as: (the number of claims with an data entry error each day) / (the number of claims processed and examined each day)