Question: 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

A manager at ABC Insurance Co. uses a control chart to monitor the daily defect ratefor data entry of insurance claims. Suppose that the number of claims processed (and examined by the manager) per day is 100. For a total time span of 60 days, the manager has calculated the overall average daily defect rate as 1.00% = 0.01.

What is the 3-sigma lower control limit of the chart used by the manager?

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