ABC Insurance Company tracks absenteeism by weekly random
samples. Based on historical experience and data, the company
expects about 250 employs to be absent from its workforce of 5,000
on the average.
For a variety of financial reasons, the company has eliminated
its flex time option for its employees. It has tracked absences
over the past fifteen days. The size of each sample is
450. The numbers of absences per sample for the last 15 days are as
follows:

Day

Number Absent

Day

Number Absent

Day

Number Absent

1

5

6

5

11

9

2

10

7

8

12

8

3

6

8

6

13

7

4

7

9

10

14

8

5

7

10

10

15

9

Assume that these 15 days are sufficient to perform this
analysis.

a) Construct a 2s control chart for
the proportion absent and plot the sample data
points. Base the center line and control limits on the
historical absentee rate prior to the elimination of the flex
time.

b) Has there been a change in the absenteeism rate? Explain why
or why not and base it on the control chart results.
c) Suppose the insurance industry’s standard for absenteeism is
4% (lower limit) to 8% (upper limit). What would you conclude about
ABC’s performance compared to the industry standard? Explain your
reason and base it on the control chart
results.

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