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

question 35

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, find the rejection region necessary for testing at the 0.05 level of significance whether there is a relationship between defect rate and years of experience.

• A) Reject H₀ if X² > 16.919
• B) Reject H₀ if X² > 15.507
• C) Reject H₀ if X² > 11.143
• D) Reject H₀ if X² > 9.488

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Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, a critical component in lease accounting.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity.

Liability

A financial obligation or debt owed by a company to others, often categorized as current or long-term.