Final answer:
The question relates to the social benefit of investments by the Gizmo Company and the planning of technician work time for air conditioner service. Investments have an additional social benefit, enhancing societal returns. The adequacy of budgeted technician time, based on historical service data with a high variation, is in question.
Step-by-step explanation:
The student's question focuses on the social benefit of investments made by the Gizmo Company in developing new household gadgets. With each investment yielding an additional 5% social benefit, it is important to consider the expected rate of return not just to the company but to society as a whole. For example, an investment yielding a 6% return to the Gizmo Company will actually yield an 11% return to society when the social benefit is accounted for. Similarly, a 7% return for the Gizmo Company translates to a 12% return for society, and so on.
Regarding the air conditioner maintenance scenario, we need to analyze the budgeted time based on the average time and standard deviation associated with servicing a unit. Given that the average servicing time is one hour with a standard deviation of one hour, a budget of 1.1 hours per technician may seem adequate at first glance. However, because the standard deviation is equal to the mean, there is a significant spread in the data, indicating that many technicians will likely require more than just 1.1 hours to service some units. To determine if this budgeted time will be enough, we could use statistical methods such as calculating confidence intervals or conducting hypothesis testing.