A Toy Manufacturer Is Experiencing Quality Problems on Its Assembly

question 37

Multiple Choice

A toy manufacturer is experiencing quality problems on its assembly line. Every defective toy that leaves the factory costs the firm $20. The firm has decided to hire quality inspectors to catch defective toys before they leave the factory.

$\begin{array}{ll}\text { Nimber of } & \text { Number of Defective } \\\text { Inspectors } & \text { Toys (per day) }\\0 & 40 \\1 & 24 \\2 & 16 \\3 & 10 \\4 & 6 \\5 & 2 \\6 & 0\end{array}$
-If each inspector is paid $100 a day, how many inspectors should the firm hire to minimize the total cost of defective toys?

• A) 3
• B) 4
• C) 5
• D) 6

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Definitions:

Establishment Stage

The phase in a business or career development during which a foundation is built and stabilized, leading towards growth.

Horns Error

A bias in performance appraisals where a person is judged based on a single negative trait, impacting the overall assessment negatively.

Behaviorally Anchored Rating Scale

is a performance appraisal method that uses specific descriptions of employee behaviors to rate performance on a scale, providing a more objective and concrete evaluation.

Likert Scale

A psychometric scale commonly used in questionnaires to gauge attitudes or responses, where participants indicate their level of agreement with a statement along a linear scale.