A Manufacturer Who Is Considering the Implementation of a One-Week

question 27

Multiple Choice

A manufacturer who is considering the implementation of a one-week training program for all new employees decides to test the program with the next 100 employees hired, and then compare their productivity rate to the productivity rate of new employees based on past records—a rate that is normally distributed with a mean of 60 and a standard deviation of 8. The new program needs to produce a minimum improvement of 4 to be considered worthwhile.
-What is the comparison distribution's standard deviation?

• A)0.80
• B)0.64
• C)8
• D)6.4

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Definitions:

Economic Profit

The gap between a company's total earnings and its combined explicit and implicit expenses.

Total Output

The total quantity of goods or services produced by an economy, firm, or production process within a given period.

Total Revenue

The complete amount of money received by a company or organization from its business activities, such as sales of goods or services, before any expenses are subtracted.

Total Cost

The complete cost of production, including both fixed and variable costs.