A Methods and Measurements Analyst Needs to Develop a Time

question 84

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: $$\begin{array} { | l | c | c | c | c | c | } \hline \text { Observation } & 1 & 2 & 3 & 4 & 5 \\\hline \text { Time(Seconds) } & 84 & 76 & 80 & 84 & 76 \\\hline\end{array}$$ 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 two seconds? Assume that the standard deviation of the task time is four seconds.

• A) 5
• B) 6
• C) 25
• D) 36
• E) 49

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Definitions:

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.

Outsourcing

The business practice of hiring external vendors to perform services or produce goods that were previously handled internally, often to reduce costs or focus on core competencies.

Benchmark Firms

Companies that are considered to be the best in their industry or category and whose practices are used as a standard or comparison in benchmarking studies.