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TABLE 12-10
One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced.The quality control department wants to find out whether there is a relationship between years of experience and defect rate.Since the job is repetitious,after the initial training period any improvement due to a learning effect might be offset by a loss of motivation.A defect rate is calculated for each worker in a yearly evaluation.The results for 100 workers are given in the table below.
-Referring to Table 12-10,find the rejection region necessary for testing at the 0.05 level of significance whether there is a relationship between defect rate and years of experience.
Predetermined Overhead Rate
A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.
Unused Capacity
Resources available for use that are not being employed in production, often representing inefficiency.
Estimated Activity
An approximation of the level of effort, production volume, or usage that forms the basis for budgeting and costing activities.
Activity at Capacity
Refers to the maximum level of work that an organization can achieve with its current resources and constraints.
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