A Work Sampling Method Is Used to Determine the Proportion

question 10

Multiple Choice

A work sampling method is used to determine the proportion of the time a worker is idle. The following information was gathered on a random basis.
If the manager wants a 95 percent confidence level (z = 1.96) and a degree of precision of + 0.03, how many more observations are needed?

• A) fewer than or equal to 700
• B) greater than 700 but fewer than or equal to 800
• C) greater than 800 but fewer than or equal to 900
• D) greater than 900

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Definitions:

Output Units

The quantity of goods or services produced, measured in units, which can refer to individual items, batches, or specific measures of output.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain at a constant.

Average Total Costs

The cost of producing each unit, calculated by dividing the overall production expense by the number of units produced.