Question

Management of a company 1s considering adopting a
bonus system to increases production. One suggestion
1s to pay a bonus on the highest 5 per cent ot production
based on past experience. Past records indicate that,
on the average, 4000 units of a small assembly are
produced during a week. The distribution of the
weekly production is approximately normal with a
standard deviation of 60 units. If the bonus is paid on
the upper 5 per cent of production, the bonus will be
paid on how many units or more?

Answer 1

Answer:

Management is considering adopting a bonus system to ...

One suggestion is to pay a bonus on the highest 5 percent of production based on past experience. Past records indicate that, on the average, 4,000