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

question 62

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
$\mathrm { P } -$ value $= 0.574$
Using $\alpha$ =0.1, the conclusion is __________________.

• A)successive items did not constitute a random sample.
• B)reject the hypothesis that successive items constituted a random sample
• C)do not reject the hypothesis that successive items constituted a random sample
• D)reject the hypothesis that successive items constituted a random sample.
• E)the distribution is binomial

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Definitions:

Wage Rates

Wage rates refer to the standard amount of compensation offered to employees for their labor services per unit of time or unit of output.

Labor Costs

Expenses associated with compensating the workforce, including wages, salaries, benefits, and related taxes paid by an employer for the work done by employees.

Total Costs

The total of variable and fixed expenses associated with the creation of goods or services.

Wage Rates

Refers to the fixed amount of compensation paid to employees for their labor, typically expressed per hour, day, or piece produced.