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

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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.
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 H<sub>0</sub> if χ<sup>2</sup> > 16.919 B)  Reject H<sub>0</sub> if χ<sup>2</sup> > 15.507 C)  Reject H<sub>0</sub> if χ<sup>2</sup> > 11.143 D)  Reject H<sub>0</sub> if χ<sup>2</sup> > 9.488
-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.

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Definitions:

Operating Income

The income generated from the primary activities of a business, determined by deducting operating costs from the gross profit.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor directly involved in manufacturing.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent or a salaried employee's wages.

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