For a Particular Time Study a Company Would Like to Be

question 31

Multiple Choice

For a particular time study a company would like to be 95% confident that the average job cycle time is within 2% of the true average job cycle time.Assume that the average job cycle time was 6.53 minutes and the standard deviation of the sample was 1.26 minutes.The number of cycles that should be used in this time study would be

• A)174
• B)358
• C)463
• D)864

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Definitions:

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points around their mean.

Level Of Risk

A measure of the potential for loss in an investment or business situation.

Variance

Variance is a statistical measurement that describes the spread of numbers in a data set, indicating how much the numbers differ from the average value.

Average Return

The mean amount of profit or loss generated by an investment over a given period.