A Manufacturing Company Produces Part A732 for the Aerospace Industry

question 35

Multiple Choice

A manufacturing company produces part A732 for the aerospace industry.This particular part can be manufactured using 3 different production processes.The management wants to know if the quality of the units of part A732 is the same for all three processes.The production supervisor obtained the following data: Process 1 had 29 defective units in 240 items,Process 2 produced 12 defective units in 180 items,and Process 3 manufactured 9 defective units in 150 items.At a significance level of .05,the management wants to perform a hypothesis test to determine whether the quality of items produced appears to be independent of the production process used.What is the rejection point condition?

• A)Reject H₀ if χ² > .10257
• B)Reject H₀ if χ² > 9.3484
• C)Reject H₀ if χ² > 5.99147
• D)Reject H₀ if χ² > 7.37776
• E)Reject H₀ if χ² > 7.81473

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Definitions:

Working Paper

A document that records the evidence, processes, and reasoning behind an accountant's audit or financial analysis.

Income Statement Columns

The structured classification of financial data in the income statement, typically involving revenues, expenses, and net income or loss.

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjusting entries are made, serving as a checkpoint before financial statements are prepared.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits.