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

question 55

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.

-Referring to Scenario 12-10,what is the expected number of employees with less than 1 year of training time and a high defect rate?

• A)4.17
• B)4.60
• C)5.28
• D)9.17

Recognize the relationship between perception and mental imagery.

Evaluate strategies for improving comprehension and knowledge retention.

Understand the principles of Modigliani & Miller (M&M) Propositions I & II without taxes, specifically regarding the irrelevance of capital structure.

Comprehend the effect of leverage on the cost of equity according to M&M Proposition II with no taxes.

---

Definitions:

Consumer Debtors

Individuals or entities that owe money for personal, as opposed to business, expenses.

Chose In Action

The thing or benefit that is transferred in an assignment; intangible personal property, such as a claim or the right to sue.

Personal Property Security Act

Legislation that outlines the rules for creating and enforcing security interests in personal property, offering a way for creditors to secure repayment of debt.

Attachment

A legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.