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

question 42

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 1 to 4 years of training time and a high defect rate?

• A) 8.64
• B) 6.00
• C) 6.67
• D) 12.00

---

Definitions:

Cost of Goods Sold

The expenses directly linked to the manufacturing of products a company sells, which consist of materials and labor.

Sales

The process of exchanging products or services for money, constituting the primary revenue stream for most businesses.

Accounts Receivable

Accounts Receivable represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Sales

Sales made by a business where the payment is delayed, typically documented with an invoice and recorded in accounts receivable.