An Industrial Engineer Is Conducting a Time Study for a Work

question 35

Multiple Choice

An industrial engineer is conducting a time study for a work element.The select time is 7.5 minutes,and the sample standard deviation of the observed time is one minute.What is the appropriate sample size if the estimate is to be 3 percent of the true average time 95 percent of the time?

• A) Fewer than or equal to 70
• B) Greater than 70 but fewer than or equal to 80
• C) Greater than 80 but fewer than or equal to 90
• D) Greater than 90

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Definitions:

Economic Entity Assumption

An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.

Corporate Form

The structure of a corporation, recognized by law as a single entity separate from its owners, with its own rights, privileges, and liabilities.

Economic Entity Assumption

This accounting principle assumes that a company's financial activities are distinct from those of its owners or other businesses.