Instruction 15-4
One Criterion Used to Evaluate Employees in the Assembly

question 25

Multiple Choice

Instruction 15-4
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
$$\begin{array} { | r | l | c | c | c | } \hline & & < \mathbf { 1 } \text { Year } & \text { 1 - 4 Years } & \text { 5 - 9 Years } \\\hline & \text { High } & 6 & 9 & 9 \\\hline \text { Defect Rate: } & { \text { Average } } & 9 & 19 & 23 \\\hline & \text { Low } & 7 & 8 & 10 \\\hline\end{array}$$
-Referring to Instruction 15-4,of the cell for 1 to 4 years of training time and a high defect rate,what is the contribution to the overall ?² statistic for the independence test?

• A)0.1296
• B)0.0144
• C)0.36
• D)0.015

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Definitions:

Factoring

Financing method where a firm sells its accounts receivables, usually to a specialized financing company, at a discount to their full value.

Receivables

Payments due from clients to a business for the delivery of goods or services that have not yet been compensated.

Collateral

An asset or property that a borrower offers to a lender as security for a loan, which the lender can seize if the borrower fails to make required payments.

Installment Loan

A loan that is repaid over time with a set number of scheduled payments.