Management Is Considering Adopting a Bonus System to Increase Production

Multiple Choice

Management is considering adopting a bonus system to increase production. 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 units of a small assembly are 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 percent of production, the bonus will be paid on how many units or more?

A) 6,255
B) 5,120
C) 3,196
D) 4,099
E) None of the choices are correct