An Industrial Engineer Is Conducting a Time Study for a Work

question 89

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 (z = 1.96) ?

• 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:

Sales Dollars

The total monetary value of sales transactions completed within a specific period.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production.

Break-Even Point

The financial calculation where total revenues equal total expenses, resulting in no profit or loss.

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level or volume, such as materials and labor.