Turnover rates in the United States and Japan. High job

Chapter 8, Problem 106SE

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QUESTION:

Problem 106SE

Turnover rates in the United States and Japan. High job turnover rates are often associated with high product defect rates because high turnover rates mean more inexperienced workers who are unfamiliar with the company’s product lines (Stevenson, Production/Operations Management, 2000). In a study, five Japanese and five U.S. plants that manufacture air conditioners were randomly sampled; their turnover rates are listed in the table.

a. Do the data provide sufficient evidence to indicate that the mean annual percentage turnover for U.S. plants exceeds the corresponding mean percentage for Japanese plants? Test using α = .05.

b. Find and interpret the observed significance level of the test you conducted in part a.

c. List any assumptions you made in conducting the hypothesis test of part a. Comment on their validity for this application.

Questions & Answers

QUESTION:

Problem 106SE

Turnover rates in the United States and Japan. High job turnover rates are often associated with high product defect rates because high turnover rates mean more inexperienced workers who are unfamiliar with the company’s product lines (Stevenson, Production/Operations Management, 2000). In a study, five Japanese and five U.S. plants that manufacture air conditioners were randomly sampled; their turnover rates are listed in the table.

a. Do the data provide sufficient evidence to indicate that the mean annual percentage turnover for U.S. plants exceeds the corresponding mean percentage for Japanese plants? Test using α = .05.

b. Find and interpret the observed significance level of the test you conducted in part a.

c. List any assumptions you made in conducting the hypothesis test of part a. Comment on their validity for this application.

ANSWER:

Step 1 of 8

We are given the following information regarding the turnover rates of U.S plants and

Japanese plants as shown below:

   

US

Japan

7.11

3.52

6.06

2.02

8

4.91

6.87

3.22

4.77

1.92

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