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

question 61

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, a test was conducted to determine if a relationship exists between defect rate and years of experience. Which of the following p-values would indicate that defect rate and years of experience are dependent? Assume you are testing at α = 0.05.

• A) 0.045
• B) 0.055
• C) 0.074
• D) 0.080

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Definitions:

Processing Departments

Divisions or areas within a factory where specific stages of production are completed, often part of a cost accounting system to track expenses and efficiency.

Job Order Costing

An accounting methodology used to allocate costs to specific jobs or batches, allowing for detailed cost tracking of particular projects.

Finished Goods Account

An account used to track the value of products that are completed and ready for sale.

Factory Overhead Ledger

An accounting ledger that details the indirect costs associated with manufacturing, which may include utilities, depreciation, and salaries of non-direct labor.