MNM Corporation Gives Each of Its Employees an Aptitude Test

question 70

Essay

MNM Corporation gives each of its employees an aptitude test. The scores on the test are normally distributed with a mean of 75 and a standard deviation of 15. A simple random sample of 25 is taken from a population of 500.
a.What are the expected value, the standard deviation, and the shape of the sampling distribution of ?
b.What is the probability that the average aptitude test in the sample will be between 70.14 and 82.14?
c.What is the probability that the average aptitude test in the sample will be greater than 82.68?
d.What is the probability that the average aptitude test in the sample will be less than 78.69?
e.Find a value, C, such that P( C) = .015.

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Definitions:

Overhead Costs

Expenses that are not directly tied to production activities, such as rent, utilities, and administrative expenses.

Batch-level Activities

Operations carried out on groups or batches of units rather than on individual units, often incurring costs that are common to the batch rather than to a single unit.

Batch-level Activity Cost

Costs associated with activities that are related to a batch of products rather than each individual unit, such as the cost of setting up machinery for each batch.

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on departmental activities and cost drivers.