Problem 1:
a) Partial and Total factor productivity
Partial Factor Productivity
Firm A
Labor productivity = Output/labor
= 1,200,000/30,000 = 40
Plant & equipment productivity = Output/plant & equipment
= 1,200,000/200,000 = 6
Energy productivity = Output/energy
= 1,200,000/17,500 = 68.57
Materials productivity = Output/materials
= 1,200,000/200,000 = 6
Firm B
Labor productivity = Output/labor
= 900,000/16,000 = 56.25
Plant & equipment productivity = Output/plant & equipment
= 900,000/150,000 = 6
Energy productivity = Output/energy
= 900,000/20,500 = 43.9
Materials productivity = Output/materials
= 900,000/180,000 = 5
Total Factor Productivity
Firm A
Total-factor productivity = net output/ (labor + Plant & equipment) input
= 1,200,000/ (30,000 + 200,000)
= 1,200,000/ 230,000
= 5.22
Firm B
Total-factor productivity = net output/ (labor + Plant & equipment) input
= 900,000/ (16,000+150,000)
= 900,000/ 166,000
= 5.42
b) Firm B has greater Total-factor productivity than Firm A by 0.20
Problem 2:
Histograms
Scatter plot: hours of overtime versus days absent
Yes, hours of overtime and days absent do appear to be correlated.
Problem 4: Process for the JMF Semicon
The mean (m) is estimated by the centreline from the X-bar chart. In this case, 140.
