A New Phone System Was Installed Last Year to Help

question 90

Multiple Choice

A new phone system was installed last year to help reduce the expense of personal calls that were being madeby employees. Before the new system was installed, the amount being spent on personal calls follows a normaldistribution with an average of $900 per month and a standard deviation of $50 per month. Refer to suchexpenses as PCEʹs (personal call expenses) . Find the probability that a randomly selected month had a PCE thatfalls below $750.

• A) 0.0013
• B) 0.8333
• C) 0.1667
• D) 0.9987

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Definitions:

Formalization

The extent to which rules, procedures, instructions, and communications are written and explicitly articulated.

Operations Technology

The hardware and software solutions used to manage and improve business operations.

Thompson's Classification

A methodology for categorizing organizations based on their level of interdependence and coordination amongst tasks.

Woodward's Classification

Woodward's classification is a framework developed by Joan Woodward that categorizes firms into three basic types—unit production, mass production, and process production—based on the complexity of their technology and production processes.