A Company Manufacturing Computer Chips Finds That 8% of All

question 15

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.
-Management decided to extend the incentive program so that the decision can be made on three months of data instead. Will the power increase, decrease, or remain the same?