One Division of a Large Defense Contractor Manufactures Telecommunication Equipment

question 17

Multiple Choice

One division of a large defense contractor manufactures telecommunication equipment for the military.This division reports that 12% of non-electrical components are reworked.Management wants to determine if this percentage is the same as the percentage rework for the company's electrical components.The Quality Control Department plans to check a random sample of the over 10,000 electrical components manufactured across all divisions.The 95% confidence interval based on this data is .0758 to .1339.Should management conclude that the percentage of rework for electrical components is lower than the rate of 12% for non-electrical components?

• A)Yes, because the lower limit of the confidence interval is 7.6%.
• B)Yes, because 12% is contained with the 95% confidence interval.
• C)No, because 12% is contained with the 95% confidence interval.
• D)No, because the upper limit of the confidence interval is 13.4%.
• E)None of the above.

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Definitions:

Outsourced Billing

The practice of hiring an external company to manage the invoicing and collection of payments for healthcare services.

Accounts Payable

The amounts owed by an organization to creditors for goods and services received but not yet paid for.

Licensing

The process of granting legal permission to individuals or organizations to carry out certain activities or professions.

Financial Responsibility

Refers to the obligation to manage resources, including money, assets, and debts, in an effective and efficient manner.