Instruction 10-14 A Quality Control Engineer Is in Charge of the Manufacture

question 135

True/False

Instruction 10-14
A quality control engineer is in charge of the manufacture of computer disks. Two different processes can be used to manufacture the disks. He suspects that the Kohler method produces a greater proportion of defects than the Russell method. He samples 150 of the Kohler and 200 of the Russell disks and finds that 27 and 18 of them, respectively, are defective. If Kohler is designated as "Group 1" and Russell is designated as "Group 2", perform the appropriate test at a level of significance of 0.01.
-Referring to Instruction 10-14,the same decision would be made with this test if the level of significance had been 0.05 rather than 0.01.

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Definitions:

Book Values

The net value of a company's assets as recorded on the balance sheet, often differing from market value.

Market Values

The current price at which an asset or security can be bought or sold in the marketplace.

Incremental Cash Flows

Additional cash flow received by an organization from taking on a new project.

Leveraged Buyout

An acquisition of a company, primarily funded by borrowed money, where the assets of the company being acquired and those of the acquiring company are used as collateral.