1. A bank manager wants to determine the percent of time that tellers are working and idle. She decides to use work sampling, and her initial estimate is that the tellers are idle 30 percent of the time. How many observations should the manager take in order to be 95 percent confident that the results will not be more than 2.5 percent away from the true result?

2. Decision Science Institute (DSI) promotes its annual national conference by mailing thousands of letters to various recipients. A time study has been conducted on the task of preparing the letters for mailing. On the basis of the observations below, DSI wants to develop a time stan-dard for the task. The organization's personal, delay, and fatigue allowance factor is 15 percent. Compute the average cycle time and normal time for each element. Then, calculate the standard time for the entire task.

JOB ELEMENT (A) Compose letter (B) Print address labels (C) Stuff, seal, and sort envelopes CYCLE OBSERVED IN MINUTES 1 2 3 822 10 3 1 923 4 11 1 2 5 11 3 PERFORMANCE RATING 120% 105% 110%