A Quality Control Inspector Keeps a Tally Sheet of the Numbers

question 50

Essay

A quality control inspector keeps a tally sheet of the numbers of acceptable and unacceptable products that come off two different production lines. The completed sheet is shown below. $$\begin{array} { | c | c | c | } \hline \text { Production line } & \begin{array} { c } \text { Acceptable } \\\text { products }\end{array} & \begin{array} { c } \text { Unacceptable } \\\text { products }\end{array} \\\hline 1 & 152 & 48 \\\hline 2 & 136 & 54 \\\hline\end{array}$$ a. What is the p-value of the test?
b. Estimate with 95% confidence the difference in population proportions.

---

Definitions:

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.

Accounting Profit

The total revenue of a business minus the explicit costs associated with that revenue, calculated using generally accepted accounting principles (GAAP).

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Short Run

In economics, a period during which at least one of a firm's inputs is fixed and cannot be changed.