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

question 122

Short Answer

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,construct a 99% confidence interval estimate of the difference in proportion between the Kohler and Russell disks that are defective.

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Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during the period.

Periodic Inventory

An inventory system where the inventory count and cost of goods sold calculations are conducted at specific intervals.

FIFO

FIFO (First-In, First-Out) is an inventory valuation method where goods first purchased or produced are the first ones sold.

Periodic

Occurring or repeating at regular intervals.