Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 3

An accounting firm monitors its tax advisory service by sampling 200 tax records and auditing the returns to determine whether there is an error that requires an amended return be filed. The firm wants to use the following data to develop a p chart to monitor the proportion of defective returns (a return is considered defective if an amended return had to be filed). Use the data to develop p chart. Does the process appear to be in control? Justify your answer.