Answer:
Option E is correct one.
None of the options are correct. The correct answer is 0.08.
Explanation:
The Upper Control Limit (UCL) for a p-chart is calculated as,
UCL = P-bar + (Z x Sp)
where,
P-bar = Fraction defective = 0.05
Sp = Standard deviation = 0.01
Using standard normal table, for 99.7% confidence level,
Z = 3.00
Putting the given values in the above formula, we get,
UCL = 0.05 + (3.00 x 0.01)
UCL = 0.08