Question: An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.

An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.
a. When the process is in control, the proportion of claims with an error is .033. A p chart has LCL =0 and UCL =.068. Plot the following seven sample results: .035,.062,.055,.049,.058,.066, and .055. Comment on whether there might be concern about the quality of the process.
Process should be
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. All points are
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; however, all points are also
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the process proportion defective.
b. An chart for the mean processing time has LCL =22.2 and UCL =24.5. The mean is =23.35 when the claim process is in control. Plot the following seven sample results: 22.4,22.6,22.65,23.2,23.4,23.85, and 24.1. Comment on whether there might be concern about the quality of the process.
Process should be
Select
. All points are
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yet the trend in points show a movement or shift toward UCL outofcontrol point.

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