SCENARIO 10-12
a Quality Control Engineer Is in Charge of the Manufacture

question 296

Multiple Choice

SCENARIO 10-12
A quality control engineer is in charge of the manufacture of USB flash drives.Two different processes can be used to manufacture the flash drives.He suspects that the Kohler method produces a greater proportion of defects than the Russell method.He samples 150 of the Kohler and 200 of the Russell flash drives and finds that 27 and 18 of them, respectively, are defective.If Kohler is designated as "Group 1" and Russell is designated as "Group 2," perform the appropriate test at a level of significance of 0.01.
-Referring to Scenario 10-12, the hypotheses that should be tested are:

• A)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } = 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } \neq 0\)
• B)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \neq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } = 0\)
• C)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \leq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } > 0\)
• D)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \geq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } < 0\)

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Definitions:

Additional Paid-in Capital

The amount of money investors have paid to a company above and beyond the par value of the shares they have purchased.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in any given year, ensuring that dividends must be paid out to preferred stockholders before common stockholders receive any.

Declared Dividend

A portion of a company’s earnings that is approved by the board of directors to be distributed to shareholders on each share of the company's stock.

Common Stock Outstanding

The total number of a company's shares of common stock that are currently owned by investors, including both public and private investors.