A Methods and Measurements Analyst Needs to Develop a Time

question 146

Multiple Choice

A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results:

How many observations should be made if the analyst wants to be 99.74 percent confident that the maximum error in the observed time is 2 seconds? Assume that the standard deviation of the task time is 4 seconds.

• A)5
• B)6
• C)25
• D)36
• E)49

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Definitions:

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Direct Materials Costs

Costs directly traceable to the production of a product, including raw materials and component parts.

Direct Conversion

The process of changing one form of energy, material, or resource directly into another without intermediate stages.