At a Large Business, Employees Must Report to Work at 7:30

question 124

Essay

At a large business, employees must report to work at 7:30 A.M. The arrival times of
employees can be described by a Normal model with mean of 7:22 A.M. and a standard
deviation of 4 minutes.
(SHOW WORK)
a. What percent of employees are late on a typical work day?
b. A psychological study determined that the typical worker needs five minutes to adjust to
their surroundings before beginning their duties. What percent of this business' employees
arrive early enough to make this adjustment?
c. Because late employees are a distraction and cost companies money, all employees need
to be on time to work. If the mean arrival time of employees does not change, what
standard deviation would the arrival times need to ensure virtually all employees are on
time to work?
d. Explain what achieving a smaller standard deviation means in the context of this
problem.

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Definitions:

Short-term Incentives

Compensation methods designed to provide immediate rewards for performance, typically in the form of bonuses, to motivate employees over a short period.

Stock Bonus Plan

A compensation program that provides employees with shares of the company's stock as a part of their remuneration.

Employee Stock Option Plans

Programs that offer employees the option to purchase company shares at a discounted price, aiming to align their interests with those of the company.

Stock Plan

An employee benefit plan in which staff have the opportunity to buy company shares, often at a discount or as part of compensation.