TABLE 10-12 A Quality Control Engineer Is in Charge of the Manufacture

question 186

Multiple Choice

TABLE 10-12
A quality control engineer is in charge of the manufacture of USB flash drives.Two different processes can be used to manufacture the flash drives.He suspects that the Kohler method produces a greater proportion of defects than the Russell method.He samples 150 of the Kohler and 200 of the Russell flash drives and finds that 27 and 18 of them,respectively,are defective.If Kohler is designated as "Group 1" and Russell is designated as "Group 2," perform the appropriate test at a level of significance of 0.01.
-Referring to Table 10-12,the hypotheses that should be tested are

• A)H₀ : π₁ - π₂ = 0 versus H₁ : π₁ - π₂ ≠ 0.
• B)H₀ : π₁ - π₂ ≠ 0 versus H₁ : π₁ - π₂ = 0.
• C)H₀ : π₁ - π₂ ≤ 0 versus H₁ : π₁ - π₂ > 0.
• D)H₀ : π₁ - π₂ ≥ 0 versus H₁ : π₁ - π₂ < 0.

---

Definitions:

Work in Process Inventory

Work in process inventory includes partially completed goods that are still in the production process at the end of a period.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Direct Materials Cost

The total expense incurred for the raw materials that are directly utilized in the making of a product.