You've Been Assigned to Use Work Sampling to Determine How

question 65

Short Answer

You've been assigned to use work sampling to determine how much time Frank spends sorting the mail. You've decided that a preliminary estimate of sample size is required to determine the proportion of time spent sorting the mail with a 97% confidence level and within 5% of the true value. What is the preliminary estimate of sample size?

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Definitions:

Alternative Choices

Different options or courses of action that can be taken in a decision-making process.

Sunk Cost

A cost that has already been incurred and cannot be recovered, regardless of future events.

Differential Cost

The difference in cost between two alternative decisions or changes in the level of output or activity.

Total Cost Method

The total cost method is an accounting approach that sums all costs involved in producing or buying goods to determine their overall expense.