A Certain Manufacturer Is Interested in Evaluating Two Alternative Manufacturing

question 74

Multiple Choice

A certain manufacturer is interested in evaluating two alternative manufacturing plans consisting of different machine layouts. Because of union rules, hours of operation vary greatly for this particular manufacturer from one day to the next. Twenty-eight random working days were selected and each plan was monitored and the number of items produced each day was recorded.
Some of the collected data is shown below: $$\begin{array} { c | c | c } \text { DAY } & \text { PLAN 1 OUTPUT } & \text { PLAN 2 OUTPUT } \\\hline 1 & 1234 \text { units } & 1311 \text { units } \\2 & 1355 \text { units } & 1366 \text { units } \\3 & 1300 \text { units } & 1289 \text { units }\end{array}$$ What assumptions are necessary for the above test to be valid?

• A) None of these listed, since the Central Limit Theorem can be applied.
• B) Both populations must be approximately normally distributed.
• C) The population variances must be approximately equal.
• D) The population of paired differences must be approximately normally distributed.

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Definitions:

Impact on Expenses

The effect that a specific action or decision has on a company's total expenses.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual amount of time they consume resources.

Customer Support Department

A division within a company responsible for helping customers with their queries, complaints, and other service-related issues.

Resolving Issues

The process of identifying, assessing, and solving problems that may arise in a business, project, or process.