Answered: Garcia's Garage desires to create some…

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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Garcia's Garage desires to create some colorful charts and graphs to illustrate how reliably its mechanics "get under the hood and fix the problem." The historic average for the proportion of customers that return for the same repair within the 30-day warranty period is 0.09. each month, Garcia track 80 customers to see whether they return for warranty repairs. The results are plotted as a proportion to report progress toward the goal. If the control limits are to be set at two standard deviations on either side of the goal, determine the control limits for this chart. In March, 14 of the 80 customers in the sample group returned for warranty repairs. Is the repair process in control?

The

UCL Subscript p equals and the LCL Subscript p equals

(Enter your responses rounded to three decimal places.)

Expert Solution

Step 1

Given,

Proportion of customers that return for repairs p = 0.09

The sampled customers n = 80

$S \tan d a r d d e v i a t i o n σ = \sqrt{\frac{p * (1 - p)}{n}}$

$U C L = p + 2 * α$

$L C L = p - 2 * α$

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