Question

Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had 15 batches to process and, after inspection, it was found that 4 batches had nonconforming policies. One batch had 4 nonconformances, another had 7, another had 2, and another had 6 nonconformance.A. What was the proportion nonconforming for each batch? Round answers to two decimal places.1st batch2nd batch3rd batch4th BatchB. What was the nonconformances per unit (NPU), in total for the 15 batches?

Answer 1

To find the proportion of nonconforming policies for each batch, divide the number of nonconformances by the batch size. The nonconformances per unit (NPU) in total can be found by summing up the number of nonconformances for all batches and dividing by the total number of policies processed.

Step-by-step explanation:

To find the proportion of nonconforming policies for each batch, we divide the number of nonconformances by the batch size of 25. For the 1st batch, the proportion is 4/25 = 0.16. For the 2nd batch, the proportion is 7/25 = 0.28.

For the 3rd batch, the proportion is 2/25 = 0.08. And for the 4th batch, the proportion is 6/25 = 0.24.

To calculate the nonconformances per unit (NPU) in total for the 15 batches, we sum up the number of nonconformances for all batches and divide by the total number of policies processed.

The total number of nonconformances is 4 + 7 + 2 + 6 = 19. The total number of policies processed is 15 batches x 25 policies per batch = 375.

Therefore, the NPU in total is 19/375 = 0.05.

Answer 2

To find the proportion of nonconforming for each batch, divide the number of nonconforming policies in each batch by the total number of policies in that batch. The nonconformances per unit (NPU) in total for the 15 batches is found by summing up the number of nonconformances in all the batches and dividing by the total number of policies.

Step-by-step explanation:

To find the proportion of nonconforming for each batch, we divide the number of nonconforming policies in each batch by the total number of policies in that batch.

• For the 1st batch, the proportion nonconforming is 4/25 = 0.16.
• For the 2nd batch, the proportion nonconforming is 7/25 = 0.28.
• For the 3rd batch, the proportion nonconforming is 2/25 = 0.08.
• For the 4th batch, the proportion nonconforming is 6/25 = 0.24.

To find the nonconformances per unit (NPU) in total for the 15 batches, we sum up the number of nonconformances in all the batches and divide by the total number of policies. In this case, we add up 4 + 7 + 2 + 6 = 19 nonconformances. The total number of policies is 15 ×25 = 375. So, the NPU is 19/375 ≈ 0.0507.