How Many Cycles Should Be Used in a Time Study

question 19

Multiple Choice

How many cycles should be used in a time study in order to be 95% confident that the time-study average job cycle time is within 5% of the true average job cycle time.Assume that the average job cycle time was 2.67 minutes and the standard deviation of the sample was 0.72 minutes.

• A)36 cycles
• B)72 cycles
• C)98 cycles
• D)112 cycles

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Definitions:

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting individuals are motivated by these needs in a hierarchical fashion.

VIE Theory

A psychological theory proposing that an individual's motivational force is determined by the perceived value of the outcome, the expectancy of achieving the outcome, and the instrumentality of the action.

Need-Based Theories

Psychological theories that focus on understanding human needs and how they influence behavior, particularly in the context of motivation.

Agency Theory

An economic theory that examines the relationship between principals (owners) and agents (executives), focusing on the conflicts of interest that may arise.