1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alex41 [277]
3 years ago
12

Management at Gordon Electronics is considering adopting 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 weekly production follows the normal distribution. The mean of this distribution is 4,000 units per week and the standard deviation is 60 units per week. If the bonus is paid on the upper 5% of production, the bonus will be paid on how many units or more?
Business
1 answer:
tekilochka [14]3 years ago
3 0

Answer:

  • <u><em>4,099 units or more</em></u>

Explanation:

The cumulative distribution of a random variable X that follows a normal distribution is given by the area undear the "bell curve" and the values are given by the corresponding table for the standard normal distribution.

The standardized value of the variable X is called Z and is calculated with the formula:

          Z=\dfrac{X-\mu}{\sigma}

Where:

         \mu=mean=4,000

         \sigma=standard\text{ }deviation=60

You read the Z-value for which the probability is greater than or equal to 5% in the table for the values of the area to the right of Z. Using probability = area under the curve ≥ 5%, the Z-value is 1.645 (interpolating between p = 0.0495, Z = 1.64 and p = 0.0505, Z = 1.65).

Substituting in the formula for Z:

  • 1.645 = (X - 4,000) / 60

  • X= 60 × 1.645 + 4,000 = 4,098.7 ≈ 4,099

Hence, the bonus will be paid on 4,099 units or more.

You might be interested in
Define CAMELS, why it was created and how the system works, and give the names of six factors of CAMELS
bearhunter [10]
  1. Capital adequacy
  2. Asset quality
  3. Management
  4. Earnings
  5. Liquidity
  6. Sensitivity

CAMELS is an international rating system to rate banks, it was created in the United States as a supervisory rating system.

In order to ensure their financial strength, banks have periodic examinations by a Office of the Comptroller of the Currency. Bank examiners issue CAMELS, a numerical rating to the bank as a result of the examination, examiners score each bank in the six factors listed above. Banks score between 1 and 5 in each category (1 being the highest).

Hope this helps, HAVE A BLESSED AND WONDERFUL DAY! As well as a great Valentines Day! :-)  

- Cutiepatutie ☺❀❤

5 0
3 years ago
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
natulia [17]

Answer:

Standard cost Supplies= $3,480

Explanation:

Giving the following information:

The cost formula for catering supplies is $400 per month plus $82 per job plus $10 per meal.

The company expected its activity in September to be 20 jobs and 144 meals.

<u>To calculate the total budgeted cost, we need to multiply the standard cost for the planned production:</u>

Standard cost Supplies= 400 + (82*20) + (10*144)

Standard cost Supplies= $3,480

4 0
3 years ago
The California Food Handler Card law requires food handlers to _____.
aalyn [17]

Answer:

undergo basic food-safety training

Explanation:

The California Food Handler Card law demands that every restaurant employee be trained on food safety practices to eradicate or minimize the possibilities of transmitting diseases. The law requires a reasonable level of training to ensure conformity with best practices in food handling.

Each restaurant must maintain records showing each employee is trained and possesses a valid California Food Handler Card. The card should be availed on request by the local enforcement officials upon request.

7 0
3 years ago
How much does a social worker make an hour?
Degger [83]
A social worker makes $21.35 a hour.
HOPE THIS HELPS YOU! ^_^
4 0
3 years ago
Sunland Construction Company uses the percentage-of-completion method of accounting. In 2021, Sunland began work on a contract i
Westkost [7]

Answer:

$3900000

Explanation:

The gross profit is the difference between the revenue earned during the year and the cost of sales. The percentage of completion method is one in which the revenue is recognized based on the cost incurred to date on the project.

Revenue to be recognized in 2021

= $15600000/($15600000 + $9600000) * $31500000

= $19500000

Though the billings for the year is lower, the difference may be recognized as unbilled receivable.

As such, the gross profit for the year

= $19500000 - $15600000

= $3900000

5 0
3 years ago
Other questions:
  • Which of the following best describes the amount of money you'll have if you put $1,000 into a savings account earning 1% annual
    8·1 answer
  • WriteOn Stationery is new in the market. They have hired a specialized agency to promote their products in the market. Which typ
    12·1 answer
  • A firm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of -$27,048, $16,850,
    9·2 answers
  • An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.
    9·1 answer
  • When the team members mention two former employees, Doug and Linda, who moved on to new companies, the team members explain how
    7·1 answer
  • The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home
    6·1 answer
  • . What happens if you don't pay your insurance premium for your car?
    12·1 answer
  • Suppose you face a choice between a certain income of $2,000, or a 50-50 chance of income of $1,000 or $3,000. Suppose you prefe
    11·1 answer
  • On January 1, 2021, Bramble Corp., declared a 10% stock dividend on its common stock when the fair value of the common stock was
    5·1 answer
  • Creating a Multimedia Presentation
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!