Management Is Considering a Bonus System to Increase Production

question 51

Multiple Choice

Management is considering a bonus system to increase production. One suggestion is to pay a bonus on the highest 5% of production based on past experience. Past records indicate that an average of 4,000 units of a small assembly is produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5% of production,the bonus will be paid on how many units or more?

• A)6,255
• B)5,120
• C)3,196
• D)4,099

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Definitions:

Approach-avoidance

A psychological conflict that occurs when a person is simultaneously drawn to and repelled by the same goal or object.

Avoidance-avoidance

A psychological conflict that occurs when a person must choose between two negative stimuli.

Approach-approach

A type of conflict situation where an individual must choose between two attractive goals, leading to a decision-making dilemma.

Multiple approach-avoidance

A conflict occurring when a person is faced with a decision that has both attractive and unappealing aspects.