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

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Definitions:

Average Total Cost

Represents the per-unit total cost of production, calculated by dividing the total cost by the total quantity produced.

Falling

The process or action of moving downwards, typically used in economics to describe a decrease in prices or values.

Short Run

In economics, the short run refers to a period during which at least one of a firm's inputs cannot be changed, limiting its capacity to adjust to demand changes.

Long Run

A period during which all factors of production and costs are variable, allowing full adjustment to any change in market conditions.