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 Select All points are Select ; however, all points are also Select the process proportion defective. b. An 2 chart for the mean processing time has LCL = 22.2 and UCL = 24.5. The mean is μ = 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 Select yet the trend in points show a movement or shift toward UCL out-of-control point.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter14: Data Mining
Section14.2: Classification Methods
Problem 11P
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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 Select
All points are Select
; however, all points are also Select
the process proportion defective.
b. An 2 chart for the mean processing time has LCL = 22.2 and UCL = 24.5. The mean is μ = 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 Select
yet the trend in points show a movement or shift toward UCL out-of-control point.
Transcribed Image Text: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 Select All points are Select ; however, all points are also Select the process proportion defective. b. An 2 chart for the mean processing time has LCL = 22.2 and UCL = 24.5. The mean is μ = 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 Select yet the trend in points show a movement or shift toward UCL out-of-control point.
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