Answered

Get comprehensive solutions to your questions with the help of IDNLearn.com's experts. Our experts provide timely and accurate responses to help you navigate any topic or issue with confidence.

Management is considering a bonus system to increase production. One suggestion is to pay a bonus on the highest 5% of production based on past experience. Past records indicate that an average of 4,000 units of a small assembly is produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5% of production, the bonus will be paid on how many units or more

Sagot :

Ogorwyneidn

Answer:

4099

Explanation:

we have mean = 4000

σ = 60 units

lets make X  = weekly production

z = X-μ/σ

z = X-4000/60

At 0.05 level of signficance, z critical value = 1.645

we put this value into the equation

[tex]z = \frac{x-4000}{60} \\1.645 = \frac{x-4000}{60}[/tex]

we cross multiply from here

60 * 1.645 = x - 4000

98.7 = x-4000

x = 4000 + 98.7

x = 4098.7

≈ 4099

the bonus would be paid on 4099 units

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Your questions deserve accurate answers. Thank you for visiting IDNLearn.com, and see you again for more solutions.