How Many Observations Should Be Made If He Wants to Be

question 102

Multiple Choice

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? Assume that the standard deviation of the task time is 5 seconds.

• A)5
• B)10
• C)25
• D)100
• E)121

Apply the concept of discounting to evaluate the present value of future cash flows.

Determine the effect of one-time expenses on project cash flows and tax liabilities.

Understand the recovery of working capital at the end of a project's life and its impact on cash flows.

Understand the impact of raising minimum wage rates beyond statutory requirements.

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Definitions:

Special Order

A one-time customer order typically at a reduced sale price, which does not disrupt regular production or sales activities.

Constrained Resource

A critical resource within a process or system that has a capacity limit potentially affecting overall performance or output.

Profitable Product

A product that generates more revenue than the costs involved in its production, marketing, and distribution.

Variable Selling Expense

Costs that vary directly with the volume of sales, including commissions and shipping fees.