Suppose That a Time Study Analyst Takes a Sample of Size

question 11

Essay

Suppose that a time study analyst takes a sample of size 24 observations. The process mean is 100 seconds, and the standard deviation is 5 seconds. If the max error can be no more than ± 2 seconds, how confident can the analyst be in the results?

---

Definitions:

Borrow

The action of receiving something from another party with the intention of returning it or its equivalent at a later date.

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time, with interest compounding at the end of each period.

Compounded Quarterly

Pertains to the process of calculating interest on a principal sum where the interest is added to the principal at the end of every quarter, thus interest in the next quarter is then earned on the new total.

Payments

Transactions by which goods, services, or obligations are paid for through the transfer of money or its equivalents.