Clerks at a large mortgage processing company have historically been observed to experience a 4% defect rate on the mortgages that they process. Using p-chart formulas, what are the upper and lower control limits for the defect rate that would be obtained by observing a sample of 100 mortgages.
- Upper limit is about 10% and Lower limit is about 2%
- Upper limit is about 10% and Lower limit is zero
- Upper limit is about 8% and Lower limit is zero
- Upper limit is about 8% and Lower limit is about 2%