Asked by Alejandro Arias on Jun 05, 2024

verifed

Verified

A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250). Among the last 100 bills inspected, the defect rate has been 14%. Calculate the upper and lower limits for the billing process for 99.7% confidence.

Defect Rate

The percentage of products or services that fail to meet quality standards out of the total produced or delivered.

Confidence

A person's belief in their own abilities or in the likelihood of a positive outcome.

Billing Process

A systematic procedure that involves issuing invoices to customers for goods or services provided, tracking payments received, and following up on past due payments.

  • Implement statistical quality control techniques in different settings, including manufacturing, healthcare, and retail sectors.
  • Investigate process consistency and proficiency employing statistical techniques.
verifed

Verified Answer

TS
Theresa SyrettJun 08, 2024
Final Answer :
0.14 plus or minus 3 × 0.03667, or .030 to 0.250