A Production Run of 500 Items Resulted in 29 Defectives $\mathrm { K } = 0.058$

question 36

Multiple Choice

A production run of 500 items resulted in 29 defectives items.A defective item is coded as 1 and a good item as 0.The following is an output from Minitab.
Runs Test: Defects

Runs test for Defects

Runs above and below $\mathrm { K } = 0.058$

The observed number of runs $= 57$
The expected number of runs $= 55.636$
29 observations above K, 471 below
P-value $= 0.574$
The null hypothesis for a one-sample runs test is __________________.

• A)successive items did not constitute a random sample.
• B)successive items constituted a random sample
• C)the proportion of defective items is 0.05
• D)the proportion of defective items is 0.058
• E)the distribution is binomial

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Definitions:

Unit Product Cost

The calculated cost of producing a single unit of product, which includes both fixed and variable costs.

Total Period Cost

The entire sum of expenses incurred by a business during a specific period, including both fixed and variable costs.

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, materials, and overhead) in the cost of a product.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.