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

---

Definitions:

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, indicating the extent to which a firm can increase profits by increasing sales.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Variable Costs

Costs that vary directly with the level of production or service provision.