The Swanson Auto Body business repaints cars that have been in an accident or which are in need of a new paint job. Its quality standards call for an average of 1.2 paint defects per door panel
Explain why there is a difference between the probability of finding exactly 1 defect when 1 door panel is inspected and finding exactly 2 defects when 2 doors are inspected.
First, using the Poisson distribution, the probability of exactly 1 defect when 1 door panel is inspected is 0.3614. The probability of twice that many defects (x = 2 ) when 2 door panels are examined is 0.2613. The reason that these probabilities are different, even though it might seem like they should be the same, is that when the mean is changed from 1.2 to 2.4 when going from 1 to 2 door panels, the total probability (that sums to 1.0 for the probability distribution) is spread over more possible outcomes, and that means that the probability of any one individual value occurring will be lower.
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Which rater error makes it difficult to distinguish among employees rated by the same rater because the rater tends to use only one part of the rating scale?
A. Contrast error B. Distributional error C. Halo error D. Error based on similarity E. Horns error
Use the information in Table 13.8 to determine the best statement
A) Location C is the best one if volumes are quite high. B) Location A becomes the most expensive place to produce at volumes in excess of 2,000. C) The break-even quantity between A and B is less than or equal to 5,000 units. D) The break-even quantity between C and B is more than 30,000 units.