A Manager Records the Production Output of Three Employees Who

question 37

Essay

A manager records the production output of three employees who each work on three different machines for three different days. The sample results are given below and the Minitab results follow. $$\begin{array}{l}\begin{array} { r r c c c } & && { \text { Employee } } \\& & \text { A } & \text { B } & \text { C } \\& \text { I } & 16,18,19 & 15,17,20 & 14,18,16 \\\text { Machine } & \text { II } & 20,27,29 & 25,28,27 & 29,28,26 \\& \text { III } & 15,18,17 & 16,16,19 & 13,17,16\end{array}\\\\\text { ANALYSIS OF VARIANCE ITEMS }\\\begin{array} { l r r r } \text { SOURCE } & \text { DF } & { \text { SS } } & { \text { MS } } \\\text { MACHINE } & 2 & 588.74 & 294.37 \\\text { EMPLOYEE } & 2 & 2.07 & 1.04 \\\text { INTERACTION } & 4 & 15.48 & 3.87 \\\text { ERROR } & 18 & 98.67 & 5.48 \\\text { TOTAL } & 26 & 704.96 &\end{array}\end{array}$$ Assume that the number of items produced is not affected by an interaction between employee and machine. Using a 0.05 significance level, test the claim that the machine has no effect on the number of items produced.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Inventory Purchases

Transactions involving buying products or raw materials for the purpose of resale or production.

Merchandise

Goods that are purchased, stored, and then sold by retailers or wholesalers, typically in the context of inventory for sale.

Cash Disbursements

Payments made by a business in cash, including expenses, debt payments, and distributions to shareholders.