A Company Manufacturing Computer Chips Finds That 8% of All

Essay

A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned
that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective
chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive
program is instituted for one month. If successful, the company will continue with the incentive program.
-Describe to management an advantage and disadvantage of using a 1% alpha level of
significance instead.