Assignment:
An insurance company wants to design a control chart to monitor whether insurance claim forms are being completed correctly. The company inspected 500 forms each day and collected data on the number of incorrectly completed claim forms over the past 12 days:
| Day |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
| X |
9 |
11 |
3 |
12 |
6 |
10 |
8 |
9 |
15 |
9 |
20 |
10 |
a. For this case, identify the item to be controlled. What type of control chart should be used? why? (P-chart/C-chart?)
b. Plot the control chart based on three-sigma limits. Is the process in control? What conclusion can you draw based on the control chart?
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