TABLE 12-10 One Criterion Used to Evaluate Employees in the Assembly Section

question 198

Multiple Choice

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, what is the expected number of employees with 1 to 4 years of training time and a high defect rate?

• A) 12.00
• B) 8.64
• C) 6.67
• D) 6.00

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Definitions:

Average Tax Rate

The ratio of total taxes paid to total income, representing the percentage of income paid in taxes.

Capital Gains

The profit earned from the sale of an asset that has increased in value over the holding period, subject to taxation.

Non-Eligible Dividends

Dividends paid from income that has not been taxed at the corporate level, often subject to a different tax rate on the recipient's end.

Operating Cash Flow

Cash generated by a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.