Provide an Appropriate Response

question 43

Essay

Provide an appropriate response.
-You are late for work. You have two options for getting to work. You may take the bus
which takes on average 40 minutes with a standard deviation of 12 minutes. Or you can
cycle which takes on average 50 minutes with a standard deviation of 2 minutes. Compare
these two distributions.
You leave your house at 8.20 am and are supposed to start work at 9.00 am.
Which option would you choose if you will be fired if you are even a few minutes late?
Which option would you choose if you know that up to 15 minutes late is OK but after that
there is trouble? Explain your thinking.

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Definitions:

Auditing Standards

These are established regulations and guidelines for the auditing process, ensuring that audits are performed ethically and uniformly.

Recorded

The act of documenting or entering financial transactions in the accounting records of a company.

Actuarial Estimates

Projections based on statistical methods by actuaries to assess risks and forecast future financial obligations.

Defined Benefit Pension Plans

Pension plans where an employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.