The Manager of Lawn and Garden Services Would Like to Estimate

question 68

Multiple Choice

The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results: $$\begin{array} { l c } \text { Activity } & \text { Time Observed } \\\hline \text { Mowing } & 200 \\\text { Trimming } & 80 \\\text { Raking } & 40 \\\text { Miscellaneous } & 80\end{array}$$ If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size?

• A) 400
• B) 1,000
• C) 1,600
• D) 2,000
• E) 2,500

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Definitions:

Unprofitable Segment

A part of an organization that consistently fails to contribute a positive net income or adds a financial loss to the company's overall performance.

Opportunity Cost

The revenue that is foregone from an alternative use of an asset, such as cash.

Make-Or-Buy Options

The decision-making process where a company chooses between manufacturing a product in-house or purchasing it from an external supplier.

Differential Revenue

The difference in revenue generated under two different scenarios or choices.