A Company Manufacturing Computer Chips Finds That 8% of All

question 75

Essay

A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program.
-Based on the data they collected during the trial program, management found that a 95% confidence interval for the percentage of defective chips was (5.0%, 7.0%). What conclusion should management reach about the new incentive program? Explain.

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Definitions:

Rock the Boat

An idiomatic expression referring to doing or saying something that can disturb an existing situation or upset people.

Tempered Radicals

Individuals who drive change in their organization by advocating for social or environmental causes, often from within existing corporate structures.

Co-optation

A process by which individuals or groups are unconsciously or willingly absorbed into the structures or policies of an organization.

Selectively Withhold

The strategic act of holding back or not disclosing certain information, reserving it for particular audiences or situations.