A Manufacturing Process Produces Computer Chips in Batches of 100

Multiple Choice

A manufacturing process produces computer chips in batches of 100. The firm believes that the percent of defective computer chips is 2%. If in five batches the percent of chips defective were 3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control limits for the proportion of defective computer chips in a batch?

A) 0
B) 1
C) 2
D) 3