A Manufacturing Company Produces Part A732 for the Aerospace Industry

question 80

Essay

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,the management wants to perform a hypothesis test to determine whether the quality of items produced appears to be independent of the production process used.Calculate the expected number of conforming units produced by Process 2.

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Definitions:

Short-Run Economic Profit

The profit earned by a firm in the short term, potentially including both actual financial gains and opportunity costs.

Average Total Cost

The total cost of production divided by the quantity of output produced; a measure of per-unit cost.

Price

The amount of money required to purchase a good or service, determined by various factors including supply and demand.

Perfectly Competitive Industry

A market structure where many firms sell identical products, entry and exit are unobstructed, and all buyers and sellers have perfect information.