Top Management at a Large Software Company Wishes to Estimate

question 25

Multiple Choice

Top management at a large software company wishes to estimate the average number of hours its firm's professional employees volunteer in the local community. Based on
Past similar studies, the standard deviation was found to be 2.22 hours. If top
Management wants to estimate the average number of hours volunteered per month by
Their professional staff to within one hour with 99% confidence, how many randomly
Selected professional employees would they need to sample?

• A) 19
• B) 25
• C) 54
• D) 44
• E) 33

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Definitions:

Social Security Rate

The percentage of income that employees and employers are required to contribute to a country's social security programs.

Federal Unemployment Tax Rate

The percentage rate at which employers are taxed by the federal government to fund the unemployment compensation program for displaced workers.

Warranty Repairs

Services to repair or replace parts of a product free of charge within a specific timeframe, as provided for under a warranty agreement.

Product Warranty Expense

The estimated cost of repairing or replacing products under warranty, recognized as an expense by a company.