A Manager Records the Production Output of Three Employees Who

question 60

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. $$\begin{array}{l}\begin{array} { r r c c c } &&& { \text { Employee } } \\& & \text { A } & \text { B } & \text { C } \\& \text { I } & 31,34,32 & 29,23,22 & 21,20,24 \\\text { Machine } & \text { II } & 19,26,22 & 35,33,30 & 25,19,23 \\& \text { III } & 21,18,26 & 20,23,24 & 36,37,31\end{array}\\\\\text { ANALYSIS OF VARIANCE ITEMS }\\\begin{array} { l r r r } \text { SOURCE } & \text { DF } & { \text { SS } } & \text { MS } \\\text { MACHINE } & 2 & 1.19 & .59 \\\text { EMPLOYEE } & 2 & 5.85 & 2.93 \\\text { INTERACTION } & 4 & 710.81 & 177.70 \\\text { ERROR } & 18 & 160.00 & 8.89 \\\text { TOTAL } & 26 & 877.85 &\end{array}\end{array}$$ 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 choice of employee has no effect on the number of items produced.

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Definitions:

Present Value

The present-day worth of money expected in the future or series of cash flows, calculated using a fixed rate of return.

Compounded Monthly

The process where interest is added to the principal amount each month, and future interest is earned on the increased balance.

Effective Annual Rate

The interest rate on an investment or loan that accounts for the effect of compounding over a one-year period.

Retirement Supplement

Additional income or benefits provided to individuals upon retirement, often as part of pensions or savings plans.