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

question 47

Multiple Choice

TABLE 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 Table 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

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Outstanding Voting Common Stock

The shares of a company held by shareholders that are entitled to vote and are not held by the company itself.

Amortization

The process of gradually writing off the initial cost of an asset over a period, typically for intangible assets.

Inventory Costing

An accounting method used to value inventory, commonly involving First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or weighted average cost methods.