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:

Cost Center

A department or segment of a business to which costs can be allocated but does not directly generate revenue.

Profit Center

A segment or department within an organization that is directly responsible for generating profit, measured by its performance.

Selling Division

A segment of a company focused on the sales and distribution of products or services.

Opportunity Cost

The value of the best alternative that is forgone when a particular decision is made, representing the benefits that could have been received from that alternative.