Management Is Considering Adopting a Bonus System to Increase Production

question 55

Multiple Choice

Management is considering adopting a bonus system to increase production. One suggestion is to
Pay a bonus on the highest 5 percent of production based on past experience. Past records
Indicate that, on the average, 4,000 units of a small assembly are produced during a week. The
Distribution of the weekly production is approximately normally distributed with a standard deviation
Of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how
Many units or more?

• A) 6,255
• B) 5,120
• C) 3,196
• D) 4,099