A Manufacturing Company Produces Part A732 for the Aerospace Industry

question 105

Multiple Choice

A manufacturing company produces part A732 for the aerospace industry.This particular part can be manufactured using 3 different production processes.The management wants to know if the quality of the units of part A732 is the same for all three processes.The production supervisor obtained the following data: Process 1 had 29 defective units in 240 items,Process 2 produced 12 defective units in 180 items,and Process 3 manufactured 9 defective units in 150 items.At a significance level of .05,we performed a chi-square test of independence to determine if the quality of the items produced appears to be independent of the production process.What are the degrees of freedom for the chi-square statistic?

• A)2
• B)3
• C)50
• D)520
• E)570

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive due to market price.

Good X

An unspecified product or commodity in economics, used in theoretical models and discussions.

Producer Surplus

The difference between the actual price producers receive for a product and the minimum price they would accept.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied by producers.