Senior management of a consulting services firm is concerned about a growing decline in the firm’s...

Senior management of a consulting services firm is concerned about a growing decline in the firm’s weekly number of billable hours. The firm expects each professional employee to spend at least 40 hours per week on work. In an effort to understand this problem better, management would like to estimate the standard deviation of the number of hours their employees spend on work-related activities in a typical week. Rather than reviewing the records of all the firm’s full-time employees, the management randomly selected a sample of size 50 from the available frame. The sample mean and sample standard deviations were 46.4 and 7.2 hours, respectively.

Construct a 97% confidence interval for the average of the number of hours this firm’s employees spend on work-related activities in a typical week.

Expert Solution

Answer:

Level of Significance ,    α =    0.03
degree of freedom=   DF=n-1=   49
't value='   tα/2=   2.235   [Excel formula =t.inv(α/2,df) ]

Standard Error , SE = s/√n =   7.2000   / √   50   =   1.0182
margin of error , E=t*SE =   2.2351   *   1.0182   =   2.2759

confidence interval is
Interval Lower Limit = x̅ - E =    46.40   -   2.275878   =   44.1
Interval Upper Limit = x̅ + E =    46.40   -   2.275878   =   48.7
97%   confidence interval is (   44.1 < µ <   48.7 )

NOTE:: I HOPE YOUR HAPPY WITH MY ANSWER....***PLEASE SUPPORT ME WITH YOUR RATING...

***PLEASE GIVE ME "LIKE"...ITS VERY IMPORTANT FOR ME NOW....PLEASE SUPPORT ME ....THANK YOU

orchestra answered 1 year ago

Senior management of a consulting services firm is concerned about a growing decline in the firm’s...

Senior management of a consulting services firm is concerned about a growing decline in the firm’s weekly number of billable hours. The firm expects each professional employee to spend at least 40 hours per week on work. In an effort to understand this problem better, management would like to estimate the standard deviation of the number of hours their employees spend on work-related activities in a typical week. Rather than reviewing the records of all the firm’s full-time employees, the...

Senior management of a consulting services firm is concerned about a growing decline in the firm’s...

Senior management of a consulting services firm is concerned about a growing decline in the firm’s weekly number of billable hours. The firm expects each professional employee to spend at least 40 hours per week on work. In an effort to understand this problem better, management would like to estimate the standard deviation of the number of hours their employees spend on work-related activities in a typical week. Rather than reviewing the records of all the firm’s full-time employees, the...

Viena is a regional firm that offers audit, tax, and consulting services. The partners are concerned...

Viena is a regional firm that offers audit, tax, and consulting services. The partners are concerned about the profitability of their audit business, and a closure decision might be forthcoming. If the firm drops the audit activities, it might do more tax work. Only 30 percent of facility costs associated with auditing disappears by dropping the auditing function. More tax work can increase tax revenues by 40 percent, but tax service-level costs also increase by 40 percent. Total facility cost...

Senior management is concerned about the recent developments in the financial markets. There is a general...

Senior management is concerned about the recent developments in the financial markets. There is a general belief that market volatility has been relatively high, yet it might climb even higher than expected in the near future due to the current global health crisis. You have been asked to conduct a thorough risk assessment of your speculative positions undertaken in question 1. For this purpose, the firm’s foreign currency analyst has provided you with the 2-month benchmark rates of these major...

A consulting firm submitted a bid for a large research project. The firm’s management initially felt...

A consulting firm submitted a bid for a large research project. The firm’s management initially felt they had a 50 – 50 chance of getting the project. However, the agency to which the bid was submitted subsequently requested additional information on the bid. Past experience indicates that for 75% of the successful bids and 40% of the unsuccessful bids the agency requested additional information. a. What is the prior probability of the bid being successful (that is, prior to the...

The senior management of SFU and UBC were deeply concerned about the enrollment for Fall 2020...

The senior management of SFU and UBC were deeply concerned about the enrollment for Fall 2020 in March because of the pandemic. However, it turned that the enrollment went up by 5 – 10% for Fall 2020. Please explain this phenomenon using concepts from this course.

The owner of a small social services management consulting firm wants to minimize the total number...

The owner of a small social services management consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the time it should take for each of her top consultants -- Adil, Barry, Camilla, and Diana -- to complete any of the four projects, as follows: Project Hours Consultant A B C D Adela 18 22 16 17 Bijeesh 13 14 22 16 Conrad 21 11...

An investment management firm CA is concerned about the risk level of a client’s equity portfolio....

An investment management firm CA is concerned about the risk level of a client’s equity portfolio. In June 2020, the client has 60% of this portfolio invested in two equity positions: ABC and EFG stocks. CA’s research provides the following views on the two stocks. ABC’s share price is very likely to go down in the next 3 months; EFG does not have immediate substantial downside risk but its upside potential is likely to be limited. Although the client refuses...

THE CASE: Kaizer Consulting Kaizer Consulting is an international management consulting firm that specializes in business...

THE CASE: Kaizer Consulting Kaizer Consulting is an international management consulting firm that specializes in business strategy and serves as a key advisor to the world’s leading companies. It provides its clients with the unique insight to drive critical decision-making and solve their most pressing problems. Every year, the majority of Kaizer’s business comes from clients with whom they have worked in the previous year – an indicator of Kaizer’s ability to achieve lasting results for its clients. Kaizer’s client...

Executive Solutions is a strategy consulting firm. Other than the senior leadership (who manage the firm,...

Executive Solutions is a strategy consulting firm. Other than the senior leadership (who manage the firm, but do not actively consult), the managers and staff are billed to clients on an hourly basis. The workload varies quite a bit from month to month requiring careful planning. Managers are billed to clients at a rate of $900 per hour and staff at a rate of $450 per hour. Managers are paid $225 per hour worked (including nonbillable time) and staff are...

Question

Senior management of a consulting services firm is concerned about a growing decline in the firm’s...

Solutions

Expert Solution

Related Solutions