TABLE 12-4 One Criterion Used to Evaluate Employees in the Assembly Section

question 144

Multiple Choice

TABLE 12-4
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 12-4, 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.

• A) Reject H₀ if χ² > 16.919
• B) Reject H₀ if χ² > 15.507
• C) Reject H₀ if χ² > 11.143
• D) Reject H₀ if χ² > 9.488

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Definitions:

Credit Portion

Refers to the part of a financial transaction that is recorded as a credit in the accounting records, increasing liabilities or decreasing assets.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and determines how revenue is accounted for.

Revenue Account

An account that tracks the income generated from a company's primary operations.

Matching Principle

An accounting concept that expenses should be recorded in the same period as the revenues they helped to generate.