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

question 83

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,find the rejection region necessary for testing at the 0.05 level of significance whether there is a relationship between defect rate and years of experience.

• A) Reject H₀ if ?² > 11.143
• B) Reject H₀ if ?² > 16.919
• C) Reject H₀ if ?² > 15.507
• D) Reject H₀ if ?² > 9.488

---

Definitions:

Immediate Recognition

The accounting practice of recording revenues or expenses as soon as they are incurred, without deferral.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Cost of Goods Manufactured

The total production cost of goods completed during a specific accounting period, including raw materials, labor, and overhead.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.