The Manager of the Service Department of a Local Car

question 62

Multiple Choice

The manager of the service department of a local car dealership has noted that the service times of a sample of 30 new automobiles has a standard deviation of 6 minutes. A 95% confidence interval estimate for the standard deviation of the service times for all its new automobiles is _____.

• A) 16.05 to 45.72
• B) 4.78 to 8.07
• C) 2.93 to 6.31
• D) 22.83 to 65.06

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Definitions:

Productivity Gains

Increases in the output of goods or services per unit of input, often as a result of improvements in efficiency or technology.

Scanlon Plan

A type of gain-sharing program that focuses on improving productivity and sharing the resulting incremental earnings with employees.

Normal Labour Cost

The typical expenses associated with compensating employees, including wages, salaries, and benefits, under standard operational conditions.

Gain-Sharing Plan

A compensation strategy where employees receive financial bonuses based on improvements in the company’s performance, encouraging teamwork and efficiency.