A Manufacturing Company Produces Part QV2Y for the Aerospace Industry

question 9

Multiple Choice

A manufacturing company produces part QV2Y for the aerospace industry.This particular part can be manufactured using 3 different production processes.The management wants to know if the quality of the units of part QV2Y is the same for all three processes.The production supervisor obtained the following data: Process 1 had 29 defective units in 240 items,Process 2 produced 12 defective units in 180 items,and Process 3 manufactured 9 defective units in 150 items.At a significance level of .05,we performed a chi-square test of independence to determine if the quality of the items produced appears to be independent of the production process.What are the degrees of freedom for the chi-square statistic?

• A) 2
• B) 3
• C) 50
• D) 520
• E) 570

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Definitions:

Cost of Goods Sold

This is the direct costs attributable to the production of the goods sold by a company.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Incremental Manufacturing Cost

The additional costs incurred to produce an extra unit of output, including additional materials, labor, and overhead expenses.

Relevant Range

The scope of operations where the premises regarding variable and fixed cost dynamics hold true.