A Methods and Measurements Analyst for Digital Devices Needs to Develop

question 124

Multiple Choice

A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results:

How many observations should be made if she wants to be 86.64 percent confident that the maximum error in the observed time is 0.5 second? Assume that the standard deviation of the task time is 4 seconds.

• A)10
• B)12
• C)120
• D)144
• E)169

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Definitions:

MP

Marginal Product, which refers to the increase in output that results from employing an additional unit of input, holding all other inputs constant.

Average Fixed Cost

Average Fixed Cost refers to the total fixed costs (costs that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.

Total Variable Cost

The total of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Product

The additional output resulting from the use of one more unit of a production input, keeping other inputs constant.