A Manufacturing Plant Has Two Assembly Lines for Producing Glass

question 75

Essay

A manufacturing plant has two assembly lines for producing glass bottles. The plant manager was concerned about whether the proportion of defective bottles differs between the two lines. Two independent random samples were selected and the following summary data computed: Find a 95% confidence interval for the true difference in proportion of defective bottles produced by the two assembly lines.
______________
Based on the interval above, can one conclude there is a difference in proportion of defective bottles produced by the two lines?
______________
Explain.
________________________________________________________

---

Definitions:

One-Line Method

A consolidation method where an investor reports its share of a subsidiary’s or associate’s single line item, such as net income, in its own financial statements.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Accounting Methods

The specific rules and procedures used by a company to prepare its financial statements, including cost, accrual, and cash basis methods.