How Many Cycles Should Be Used in a Time Study

question 24

Multiple Choice

How many cycles should be used in a time study in order to be 98% confident that the time-study average job cycle time is within 4% of the true average job cycle time? Assume that the average job cycle time is 4.25 minutes and the standard deviation of the sample is 0.65 minutes.

• A)55 cycles
• B)70 cycles
• C)80 cycles
• D)95 cycles

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Definitions:

Ledger

A book or other collection of financial accounts of a particular type, typically used in accounting to record transactions.

Charges

Fees or prices asked for goods or services.

Payments

The act of providing money or its equivalent in exchange for goods, services, or to settle debts.

Balance Due

The amount of money owed on an invoice or bill that remains unpaid and is required to settle the account.