A Time Study of a Certain Service Task Found an Average

question 18

Essay

A time study of a certain service task found an average time of 12.7 minutes and a standard deviation of 1.43, with a standard sample large enough that we are 98% confident that standard time is within 4% of its true value? Was a sample of 25 large enough?

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Definitions:

Net Income

Net income is the total revenue minus total expenses of a business, showing the company's profit during a specific period.

Correcting Entries

Journal entries made to amend previously recorded transactions that were incorrect or incomplete.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from these sales.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.