Problem 1 (10 points). A bank was getting several complaints from their clients about their accounts discrepancy. The bank management decided to use p-charts to monitor the process for account entries. Over a months time, 12 samples of 50 accounts were chosen and the proportions of mistakes were found as: 01, .02, .02, .03, .01, .02, .01, .04, .03, .03, .00, and .02

a. Calculate the control limits for a p Control Chart.

b. Recently 50 accounts was again selected, and 5 mistakes were found. Discuss in detail if the process is still in control? Why or why not.

Problem 2 (10 points). A beer company regularly uses a control chart application tests its filling stations accuracy. Thirty random bottles, each containing 6 items, were taken in a control chart application and it was found that the grand average is = 12.14 oz and = 0.3.

a. Determine the upper and lower control limits for the and R charts. (7)

b. The following measurements are taken last week: 12.2, 12.6, 11.8, 12.5, 12.2 and 12.5. Is the process still in control? Provide complete logic for your answer. (3)

Problem 3(20 points) At the ABC Floral Shop, an argument developed between two of the owners, Bob and Henry, over the accuracy of forecasting methods. Bob argued that exponential smoothing with a = .1 would be the best method. Henry argued that the shop would get a better forecast with a =.3. Use Excel spread sheet for calculations and submit it with your work. Using F₁ =100 and the following data, which of the two managers is right? You must provide detailed reasoning to support your answer.

Day	Demand	Day	Demand
1	200	8	154
2	134	9	144
3	147	10	135
4	165	11	132
5	183	12	163
6	125	13	157
7	146	14	169