Employees at a large computer company earn sick leave in one-minute increments d

Question

Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year. Any unused time goes into a sick bank account that they or other employees can use in the case of emergencies. The human resources department has determined that the amount of unused sick time for individual employees is uniformly distributed between 0 and 480 minutes. The company has decided to give a cash payment to any employee that returns over 400 minutes of sick leave at the end of the year. What percentage of employees could expect a cash payment?

16.67 percent

0.1667 percent

Just over 43 percent

80 percent

Explanation / Answer

Percentage of employees could expect a cash payment

= P(X > 400)

= (480 - 400) / (480 - 0)

= 80 / 480

= 1/6

= 16.67%

Option A is correct.

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