# An insurance company wants to design a control chart to monitor

Problem2:     An   insurance company wants to design a control chart to monitor whether   insurance claim forms are being completely correctly. The company intends to   sue the chart to see if improvements in the design of the form are effective.   To start the process the company collected data on the number of incorrectly   completed claim forms over the past 10 days. The insurance company processes   thousands of these forms each day, and due to the high cost of inspecting   each form, only a small representative sample was collected each day. The   data and analysis are shown in the table:        Sample Number  # of Forms    Inspected Completed     Incorrectly   1 300 10   2 300 8   3 300 9   4 300 13   5 300 7   6 300 7   7 300 6   8 300 11   9 300 12   10 300 8        a)   (20 points) Assume that the process is “in control”   during past 10 days. Calculate the mean and sigma.

b) (20 points) Calculate the upper control limit and the lower   control limit (use a multiple of 3 times sigma for the control limits).