TABLE 10-12 A Quality Control Engineer Is in Charge of the Manufacture

question 72

Multiple Choice

TABLE 10-12
A quality control engineer is in charge of the manufacture of computer disks. Two different processes can be used to manufacture the disks. He suspects that the Kohler method produces a greater proportion of defects than the Russell method. He samples 150 of the Kohler and 200 of the Russell disks and finds that 27 and 18 of them, respectively, are defective. If Kohler is designated as "Group 1" and Russell is designated as "Group 2," perform the appropriate test at a level of significance of 0.01.
-Referring to Table 10-12, the hypotheses that should be tested are

• A) H₀: π₁ - π₂ = 0 versus H₁: π₁ - π₂ ≠ 0.
• B) H₀: π₁ - π₂ ≠ 0 versus H₁: π₁ - π₂ = 0.
• C) H₀: π₁ - π₂ ≤ 0 versus H₁: π₁ - π₂ > 0.
• D) H₀: π₁ - π₂ ≥ 0 versus H₁: π₁ - π₂ < 0.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred by a firm in producing or offering a product or service.

Total Cost

The complete cost of producing a given amount of goods or services, including both fixed and variable costs.

Producing Bagels

Refers to the process of making bagels, which includes mixing, shaping, boiling, and baking the dough.

Average Total Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.