# The commercial loan operation of a financial institution has a standard for processing new loan applications in

## Question:

(a) Set up the fraction nonconforming control chart for this process. Use the variable-width control limit approach. Plot the preliminary data in table 7E.2 on the chart. Is the process in statistical control?

(b) Assume that assignable causes can be found for any out-of-control points on this chart. What center line should be used for process monitoring in the next period, and how should the control limits be calculated?

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**Related Book For**

## Introduction to Statistical Quality Control

**ISBN:** 978-1118146811

7th edition

**Authors:** Douglas C Montgomery