Question: A quality control manager is observing process that creates outlet covers. Occasionally a unit emerges from the process with a discoloration. The manager would like

A quality control manager is observing process

A quality control manager is observing process that creates outlet covers. Occasionally a unit emerges from the process with a discoloration. The manager would like to check if the proportion of discolored items is in control. The manager has taken 20 samples each of size 120. The mean rate of discolored units was found to be 3.2%. Suppose one of the samples taken had 7 discolored units. If control limits were set for 99.73% confidence, would that particular sample have caused the process discoloration rate to be tagged as out of control? Explain, citing relevant computations

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