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

question 193

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.
$$\begin{array}{l}\text { \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \quad\quad \quad Years Since Training Period }\\\begin{array} { r | r c c } & < 1 \text { Year } & 1 - 4 \text { Years } & 5 - 9 \text { Years } \\\hline \text { High } & 6 & 9 & 9 \\\text { Defect Rate: Average } & 9 & 19 & 23 \\\text { Low } & 7 & 8 & 10\end{array}\end{array}$$
-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 ? = 0.05.

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

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a company or individual aims to hold in order to meet short-term obligations.

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A financial plan that estimates cash inflows and outflows over a specific period, helping organizations manage their liquidity and cash reserves.

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Management use typically refers to information or resources utilized by the management team for decision-making and strategic planning purposes.

June Cash Budget

A financial plan that estimates the cash inflows and outflows for a business during the month of June, aiding in managing liquidity.