Question

In: Operations Management

An insurance company has an online help service for its customers. Customer queries that take more...

An insurance company has an online help service for its customers. Customer queries that take more than 5 minutes to resolve are categorized as​ "unsatisfactory" experiences. To evaluate the quality of its​ service, the company takes 10 samples of 100 calls each while the process is under control.

p values (n = 100)

0.06

0.14

0.13

0.05

0.16

0.08

0.17

0.04

0.19

0.16

a. calculate the p̄ and Sp values and set up control limits so that future sample p values should fall within the control limits 99.7% of the time

The p̄ value is _____. (enter your response rounded to three decimal places.)

Solutions

Expert Solution

a)

The p- value is average(0.06,0.14,0.13,0.05,0.16,0.08,0.17,0.04,0.19,0.16) = 0.118

p value is sqrt((p-bar*(1-p-bar))/sample size) = sqrt((0.118*(1-0.118))/100) = 0.032260812 = 0.032 (Rounded to 3 decimal places)

As Z = 3 here,

The upper control limit is p-bar + z*Sp = 0.118+3*0.032 = 0.214
The upper control limit is p-bar - z*Sp = 0.118-3*0.032 = 0.022


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