SCENARIO 12-10
One Criterion Used to Evaluate Employees in the Assembly

question 6

Multiple Choice

SCENARIO 12-10
One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced.The quality control department wants to find out whether there is a relationship between years of experience and defect rate.Since the job is repetitious, after the initial training period any improvement due to a learning effect might be offset by a loss of motivation.A defect rate is calculated for each worker in a yearly evaluation.The results for 100 workers are given in the table below. $$\begin{array} { r r | | c c c } & & { \text { Years Since Training Period } } \\& & < 1 \text { Year } & 1 - 4 \text { Years } & 5 - 9 \text { Years } \\\hline \hline { \text { Defect Rate: } } & \text { High } & 6 & 9 & 9 \\& \text { Average } & 9 & 19 & 23 \\&\text { Low } & 7 & 8 & 10\end{array}$$
-Referring to Scenario 12-10, a test was conducted to determine if a relationship exists between defect rate and years of experience.Which of the following p-values would indicate that defect rate and years of experience are dependent? Assume you are testing at $\alpha$ = 0.05.

• A)0.045
• B)0.055
• C)0.074
• D)0.080

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Debt-to-equity Ratio

A financial ratio highlighting the use of debt versus equity in the capital structure supporting a company's assets.

Times Interest

A financial ratio indicating how many times a company can cover its interest payments with its earnings before interest and taxes.

Earnings Per Share

A financial metric that measures the profitability of a company by dividing its net income by the number of outstanding shares of its common stock.