A Methods and Measurement Analyst Wants to Develop a Time

question 86

Multiple Choice

A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds.
How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second?

• A) 3
• B) 4
• C) 13.3
• D) 16
• E) 25

Learn to calculate the probability of compound events using the addition and multiplication rules.

Apply conditional probability concepts to revise the probabilities of events based on additional information.

Distinguish between different types of probabilities (posterior, joint, marginal) and know their applications.

Apply probability concepts to real-world scenarios and understand their practical implications.

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Definitions:

Selling New Common Stock

The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.

Capital Budgeting Projects

Capital budgeting projects are long-term investment decisions made by companies to invest in assets and projects for future growth and profitability.

Corporate WACC

Weighted Average Cost of Capital for a corporation, which is the average rate of return it must earn on its investments to maintain the value of its stock and pay its debt.