A Production Run of 500 Items Resulted in 29 Defectives

question 36

Multiple Choice

A production run of 500 items resulted in 29 defectives items.A defective item is coded as 1 and a good item as 0.The following is an output from Minitab. Runs Test: Defects
Runs test for Defects
Runs above and below K = 0.058
The observed number of runs = 57
The expected number of runs = 55.636
29 observations above K,471 below
P-value = 0.574
Using α=0.1,the conclusion is __________________.

• A) successive items did not constitute a random sample.
• B) successive items constituted a random sample
• C) do not reject the hypothesis that successive items constituted a random sample
• D) reject the hypothesis that successive items constituted a random sample
• E) the distribution is binomial

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Definitions:

Time Inconsistent

When preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Central Bankers

Officials responsible for controlling a country's money supply and monetary policy, often through a central bank.

Policymakers

Individuals or groups responsible for making decisions and guidelines that affect the public policies of a nation.

Skepticism

The attitude of doubting the truth of something, such as claims, statements, or the validity of certain beliefs.