Given the Following Process Control Data for a Quality Attribute

question 23

Short Answer

Given the following process control data for a quality attribute (three samples of size 400 each):
If the process is known to produce 11 percent defectives on average,using three sigma control limits,do any of the sample proportions indicate an out-of-control process proportion of defectives?

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Definitions:

Liquidated Damages

A bona fide estimate of the monetary damages that would flow from the breach of a contract.

Consequential Damages

Indirect damages that do not flow directly from the act but occur as a consequence of the initial act, often involving loss of profit or other secondary losses.

Liquidated Damages

A pre-determined sum agreed upon by parties in a contract as compensation for breach of contract, where actual damages are difficult to ascertain.