a) EstabIish 30 upPper and Iower control limits. UCL, = |(enter your response as a number between 0 and 1, rounded to three decimal places). LCL, | (enter your response as a number between 0 and 1, rounded to three decimal places). b) Why can the lower control limit not be a negative number? O A. Since the percent of defective records cannot be a negative number. O B. Since the upper control limit cannot be a negative number. O C. Since the percent of defective records is always a positive number. O D. Since the upper control limit is positive. c) The industry standard for the upper control limit is 0.10. What does this imply about Birmingham Bank's own standards? The industry standard is the standard at Birmingham Bank.
a) EstabIish 30 upPper and Iower control limits. UCL, = |(enter your response as a number between 0 and 1, rounded to three decimal places). LCL, | (enter your response as a number between 0 and 1, rounded to three decimal places). b) Why can the lower control limit not be a negative number? O A. Since the percent of defective records cannot be a negative number. O B. Since the upper control limit cannot be a negative number. O C. Since the percent of defective records is always a positive number. O D. Since the upper control limit is positive. c) The industry standard for the upper control limit is 0.10. What does this imply about Birmingham Bank's own standards? The industry standard is the standard at Birmingham Bank.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:**Data Entry Defect Analysis at Birmingham Bank**
**Overview:**
Five data entry operators at the Birmingham Bank's data processing department monitored the number of defective records produced daily over a span of 30 days. Each sample consisted of 350 records.
**Defect Record Summary:**
| Sample No. | No. Defectives | Sample No. | No. Defectives | Sample No. | No. Defectives |
|------------|-----------------|------------|-----------------|------------|-----------------|
| 1 | 6 | 11 | 5 | 21 | 16 |
| 2 | 5 | 12 | 5 | 22 | 12 |
| 3 | 20 | 13 | 17 | 23 | 7 |
| 4 | 11 | 14 | 3 | 24 | 6 |
| 5 | 11 | 15 | 12 | 25 | 13 |
| 6 | 9 | 16 | 9 | 26 | 9 |
| 7 | 13 | 17 | 11 | 27 | 15 |
| 8 | 9 | 18 | 5 | 28 | 5 |
| 9 | 7 | 19 | 18 | 29 | 13 |
| 10 | 13 | 20 | 17 | 30 | 4 |
**Analysis:**
The table lists the number of defective records detected in each sample, over a course of 30 samples. Each sample reflects a single day's data entry output, showing the variability and the frequency of defects detected.
**Usage:**
This data can be utilized to determine patterns of data entry errors, identify any trends or outliers, and implement strategies to improve data entry accuracy at Birmingham Bank.
![**Establishing Control Limits and Industry Standards**
a) **Establish 3σ Upper and Lower Control Limits.**
- UCL<sub>p</sub> = [ ] (enter your response as a number between 0 and 1, rounded to three decimal places).
- LCL<sub>p</sub> = [ ] (enter your response as a number between 0 and 1, rounded to three decimal places).
b) **Why Can the Lower Control Limit Not Be a Negative Number?**
- O A. Since the percent of defective records cannot be a negative number.
- O B. Since the upper control limit cannot be a negative number.
- O C. Since the percent of defective records is always a positive number.
- O D. Since the upper control limit is positive.
c) **Industry Standards and Implications for Birmingham Bank**
The industry standard for the upper control limit is 0.10. What does this imply about Birmingham Bank's own standards?
- The industry standard is [ ] ▼ the standard at Birmingham Bank.
**Explanation**: This exercise involves setting control limits for a process, specifically looking at defect percentages. The problem is focused on ensuring these limits are logical (e.g., non-negative) and understanding how standards compare to industry norms.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab2cc191-2fdd-4696-b5f6-58c0f2050b23%2F40319818-10a6-4f4c-890d-f2f6b58111b9%2F9xdlf9v_processed.png&w=3840&q=75)
Transcribed Image Text:**Establishing Control Limits and Industry Standards**
a) **Establish 3σ Upper and Lower Control Limits.**
- UCL<sub>p</sub> = [ ] (enter your response as a number between 0 and 1, rounded to three decimal places).
- LCL<sub>p</sub> = [ ] (enter your response as a number between 0 and 1, rounded to three decimal places).
b) **Why Can the Lower Control Limit Not Be a Negative Number?**
- O A. Since the percent of defective records cannot be a negative number.
- O B. Since the upper control limit cannot be a negative number.
- O C. Since the percent of defective records is always a positive number.
- O D. Since the upper control limit is positive.
c) **Industry Standards and Implications for Birmingham Bank**
The industry standard for the upper control limit is 0.10. What does this imply about Birmingham Bank's own standards?
- The industry standard is [ ] ▼ the standard at Birmingham Bank.
**Explanation**: This exercise involves setting control limits for a process, specifically looking at defect percentages. The problem is focused on ensuring these limits are logical (e.g., non-negative) and understanding how standards compare to industry norms.
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