Instruction 15-11
One Criterion Used to Evaluate Employees in the Assembly

question 117

Multiple Choice

Instruction 15-11
One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced. The quality control department wants to find out whether there is a relationship between years of experience and defect rate. Since the job is repetitious, after the initial training period any improvement due to a learning effect might be offset by a loss of motivation. A defect rate is calculated for each worker in a yearly evaluation. The results for 100 workers are given in the table below.
Years since Training Period
$$\begin{array} { | c | c | c | c | c | } \hline & & < \mathbf { 1 } \text { Year } & \mathbf { 1 - 4 } \text { Years } & \text { 5-9 Years } \\\hline & \text { High } & 6 & 9 & 9 \\\hline \text { Defect Rate: } & \text { Average } & 9 & 19 & 23 \\\hline & \text { Low } & 7 & 8 & 10 \\\hline\end{array}$$
-Referring to Instruction 15-11,what is the expected number of employees with less than 1 year of training time and a high defect rate?

• A) 4.17
• B) 4.60
• C) 9.17
• D) 5.28

Know how to expand a simple sentence to add information.

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Definitions:

Owner's Capital Account

An account on a company's balance sheet that represents the owner's invested capital plus retained earnings minus withdrawals.

Balance Sheet Accounts

Accounts that reflect the financial position of a company at a specific point in time, including assets, liabilities, and shareholders' equity.

Closing Entry Process

The procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, clearing the temporary accounts for the next period.

Permanent Accounts

Permanent Accounts are balance sheet accounts whose balances are carried forward from one accounting period to the next, including assets, liabilities, and equity accounts.