An airline found that on average, 0.62 percent of the luggage they received from passengers at LAX (Los Angeles Airport) is lost or damaged. On a typical day, 1000 pieces of luggage pass through this airport. What are the control limits for a p-chart for monitoring the daily fraction nonconforming?
Standard deviation of p-bar = Sq. root of [(0.0062)(1 - 0.0062)/1000] = 0.00248
UCL = 0.0062 + 3(0.00248) = 0.01364
LCL = 0.0062 - 3(0.00248) = -0.00124; use 0
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