Here is the correct question.
If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding that service life is out of control when it is actually under control (Type I error)?
Answer:
B. 0.045
Explanation:
520 = 500+Z*(20/√4)
= 520 = 500+z(10)
= 20 = 10z
Z = 2
480 = 500+Z*(20/√4)
480 = 500-z(10)
Z = 2
When we go to the standard normal table, a z value of 2 has a value of 0.4772 in the table.
2 x 0.4772 = 0.9544
1-0.9544 = 0.0456