THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 49

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As part of its quality control program,the Scullia Auto Company (SAC)began inspecting all supplier shipments of steel bars and recording the defect rate according to quality criteria such as strength,dimensional characteristics,etc.When SAC began this program,the defect rate in 100 shipments averaged 9%.A recent report indicated an average defect rate of 2.2% in 136 shipments.The quality control department wants to determine,at the 0.05 level of significance,if this represents a significant improvement in the quality of the steel.
-What is the test statistic?

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Definitions:

Short Run

A period in which at least one input, such as plant size or capital equipment, in the production process is fixed.

Long Run

A period in economic theory during which all inputs can be adjusted by firms, allowing them to fully adapt to changes in market conditions or to scale their operations.

Sales

The transactions or activities involved in selling goods or services in return for money or other compensation.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.