1. Five data entry operators work at the data processing department of the Royal Bank. Each day for 30 days, the number of defective records in a sample of 250 records typed by these operators has been noted, as follows:   Sample No. No. Defective Sample No. No. Defective Sample No. No. Defective 1 18 11 17 21  7 2  5 12 12 22  5 3 16 13  6 23 19 4  4 14  7 24 10 5 11 15 13 25 11 6  8 16 10 26  8 7 12 17  4 27 12 8  4 18  6 28  9 9  6 19 12 29  6 10 16 20  3 30 13   Establish 3σ upper and lower control limits. Why can the lower control limit not be a negative number? The industry standards for the upper and lower control limits are 0.11 and 0.02, respectively. What does this imply about Royal Bank’s own standards?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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  • 1. Five data entry operators work at the data processing department of the Royal Bank. Each day for 30 days, the number of defective records in a sample of 250 records typed by these operators has been noted, as follows:

 

Sample

No.

No.

Defective

Sample

No.

No.

Defective

Sample

No.

No.

Defective

1

18

11

17

21

 7

2

 5

12

12

22

 5

3

16

13

 6

23

19

4

 4

14

 7

24

10

5

11

15

13

25

11

6

 8

16

10

26

 8

7

12

17

 4

27

12

8

 4

18

 6

28

 9

9

 6

19

12

29

 6

10

16

20

 3

30

13

 

  • Establish 3σ upper and lower control limits.
  • Why can the lower control limit not be a negative number?
  • The industry standards for the upper and lower control limits are 0.11 and 0.02, respectively. What does this imply about Royal Bank’s own standards?
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