Metro Bus System The Management of the Metro Bus System of Houston,TX Was

question 21

Essay

Metro Bus System
The management of the Metro Bus System of Houston,TX was faced with the task of improving efficiency in terms of running on time.One of its greatest problems was breakdown of equipment.Between 1994 and 1997,emphasis was placed on maintenance.Random samples of 10,000 bus runs were taken from the records of 1994 and 1997.The percentage of breakdowns in 1994 was 0.4 and in 1997 it was 0.04.Use a chi-square test for equal proportions to analyze these data.
-State the conclusion at the 0.01 significance level.

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Production Costs

Direct costs associated with the manufacturing of goods, including labor, materials, and overhead expenses.

Variable Manufacturing Costs

Expenses that vary directly with the level of production, such as raw materials and labor.

Book Value

The net value of a company's assets, calculated by subtracting its liabilities from its total assets.