A Company Checking the Productivity of Its Assembly Line Monitored

question 509

Multiple Choice

A company checking the productivity of its assembly line monitored a random sample of workers
For several days. They found that a 95% confidence interval for the mean number of items
Produced daily by each worker was (23,27) . Which is true?

• A) 95% of the workers sampled produced between 23 and 37 items a day.
• B) 95% of samples would show mean production between 23 and 27 items a day.
• C) Workers produce an average of 23 to 27 items on 95% of the days.
• D) We're 95% sure that the mean daily worker output is between 23 and 27 items.
• E) 95% of all the workers average between 23 and 27 items a day.

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Definitions:

Responsibility Centers

Parts of an organization treated as separate entities for managerial accounting and performance measurement, each responsible for its own revenues, expenses, and investment funds.

Decentralized Business

A business model where decision-making and operational activities are distributed across different locations or departments, rather than centralized in a single location.

Operating Decisions

Decisions that relate to the day-to-day activities of a business, affecting its operational efficiency and effectiveness.

Top Management

The highest level of management in an organization, responsible for overall strategy and policy-making.