Identify three specific criteria for determining when a process is out of statistical control.
Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 53m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample2h 19m
- 10. Hypothesis Testing for Two Samples3h 22m
- 11. Correlation1h 6m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
1. Intro to Stats and Collecting Data
Intro to Stats
Problem 14.2.5
Textbook Question
Control Charts for p. In Exercises 5–12, use the given process data to construct a control chart for p. In each case, use the three out-of-control criteria listed near the beginning of this section and determine whether the process is within statistical control. If it is not, identify which of the three out-of-control criteria apply.
Euro Coins Consider a process of minting coins with a value of one euro. Listed below are the numbers of defective coins in successive batches of 10,000 coins randomly selected on consecutive days of production.
32 21 25 19 35 34 27 30 26 33

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Step 1: Calculate the sample proportion (p̂) for each batch. The sample proportion is calculated as the number of defective coins divided by the total number of coins in each batch. For each batch, use the formula: p̂ = (Number of Defective Coins) / (Total Coins in Batch).
Step 2: Compute the overall proportion (p̄) of defective coins across all batches. This is done by summing up all the defective coins across batches and dividing by the total number of coins across all batches. Use the formula: p̄ = (Total Defective Coins) / (Total Coins in All Batches).
Step 3: Calculate the standard error (SE) for the control chart. The standard error is given by the formula: SE = sqrt((p̄ * (1 - p̄)) / n), where n is the sample size (10,000 coins per batch in this case).
Step 4: Determine the control limits for the control chart. The upper control limit (UCL) and lower control limit (LCL) are calculated as follows: UCL = p̄ + 3 * SE and LCL = p̄ - 3 * SE. If LCL is negative, set it to 0 since proportions cannot be negative.
Step 5: Plot the sample proportions (p̂) for each batch on the control chart and compare them to the control limits. Identify any points that fall outside the control limits or patterns that meet the three out-of-control criteria (e.g., a single point outside the control limits, a run of points on one side of the centerline, or a trend). Determine whether the process is in statistical control based on these criteria.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Control Charts
Control charts are statistical tools used to monitor the stability of a process over time. They display data points in time order and include control limits that indicate the expected variation in the process. By analyzing these charts, one can determine if a process is in control or if there are signs of variation that may indicate problems.
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Out-of-Control Criteria
Out-of-control criteria are specific rules used to identify when a process is exhibiting unusual variation that may indicate it is not operating as expected. Common criteria include points falling outside control limits, a run of consecutive points above or below the centerline, or a trend of points moving in one direction. These criteria help in diagnosing potential issues in the process.
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Defective Rate (p)
The defective rate, often denoted as 'p', represents the proportion of defective items in a sample. In the context of control charts, it is calculated by dividing the number of defective items by the total number of items inspected. Monitoring the defective rate helps in assessing the quality of the production process and determining if it remains within acceptable limits.
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