Figure 7-3

question 51

Multiple Choice

Figure 7-3.Hamilton Company manufactures engines. Hamilton produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Traynor Inc. and Bello Company. Both suppliers are reliable and rarely deliver late; however, Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95. Hamilton purchases 70% of its components from Bello, because of the lower price. The total annual demand is 75,000 units.
-Refer to Figure 7-3. Calculate the activity rate for inspecting components based on sampling hours.

• A) $78 per hour
• B) $72 per hour
• C) $77.25 per hour
• D) $80 per hour
• E) $76 per hour

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Definitions:

Intervention Group

The group in an experimental study that receives the treatment or intervention being tested, as opposed to a control group.

Study Group

A collection of individuals brought together to participate in a research study or to collectively study a particular subject.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Scientific Hypothesis

A testable prediction about the relationship between two or more variables, forming the basis for an experiment or observational study.