What Is the Effect of an Increase in the Desired

question 133

Multiple Choice

What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study?

• A)increases
• B)decreases
• C)unaffected
• D)may increase or decrease, depending on the sample standard deviation
• E)impossible to say without additional information

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Definitions:

Purchase Cost

The total expense incurred to acquire an asset, including the purchase price and associated costs.

360-Day Year

A financial convention or simplification to treat all months as 30 days in duration for the ease of interest calculations and financial analysis.

Commission

A fee or percentage of a sale paid to an employee or agent for facilitating or completing a sale.

Semiannually

Happening semiannually; every six months.