How Many Cycles Should Be Used in a Time Study

question 18

Multiple Choice

How many cycles should be used in a time study in order to be 95% confident that the time-study average job cycle time is within 5% of the true average job cycle time? Assume that the average job cycle time is 2.67 minutes,and the standard deviation of the sample is 0.72 minutes.

• A)36 cycles
• B)72 cycles
• C)98 cycles
• D)112 cycles

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Definitions:

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, known as the parent company.

Corporation Law

The body of law that governs the formation, operation, and dissolution of corporations, including their rights and obligations.

Sole Shareholder

An individual or entity that owns 100% of the shares of a corporation.

Nonshareholder-Creditors

Creditors of an entity who, unlike shareholders, do not own any part of the entity but have a claim on its assets due to outstanding debts.