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The information for this entry should come from a deduction authorization form that is completed by participating employees at the beginning of each year, and which is usually retained by the human resources department

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The upper bound in (216) can be maintained in an adaptive way The adaptation is at the level of the individual examinees To show the procedure, we assume that j examinees have been tested For the last examinee we had a probability of item administration equal to P j Ai , a probability of feasibility equal to P j F , and a probability of item i being available for selection equal to P j Ei [ F For examinee j 1 the update of the probabilities of item eligibility is given by P j 1 Ei 1 1 rmax P j Ei [ F j : P j F P Ai P j F 2:17

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Based on this information, a receiver can draw spheres centered on each of the satellites with the radius of each sphere being equal to the distance between the GPS receiver and the satellite on which the sphere is centered The spheres will hopefully intersect at only one point on the Earth s surface which corresponds to the location of the GPS receiver

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3 Cost to Correct Data Errors On average, the accounting staff spent three hours per day correcting errors that had been discovered on time sheets or created during data entry These errors were investigated and corrected by a senior data-entry clerk, whose hourly burdened pay was $1528 per hour This resulted in a monthly cost of $963 (3 hours 21 days $1528) The grand total of all these costs was $29,869 per month, or $358,428 per year The cost accountant s next task, that of determining the value of the benefits derived from the timekeeping system, was much more difficult She found that the daily hours worked were used by the payroll staff to calculate and pay weekly wages to the direct labor employees She described this function as a mandatory one for which the system must provide sufficient data to calculate the payroll, but she could not ascribe to it a monetary value Next, she looked at the benefit of tracking hours by job worked This information was used by the cost accounting staff to develop an income statement for each job, which the sales staff used to revise its pricing estimates for future jobs, to verify that pricing levels were sufficiently high to ensure a targeted profitability level per job of 30 percent The proportion of direct labor to all job costs was about onethird, so this was considered a significant cost that must be tracked for this purpose The pricing staff assured the cost accountant that they frequently altered their pricing strategies in accordance with the information they received through the job income statements Once again, the cost accountant found herself unable to clearly quantify a benefit associated with the tracking of direct labor hours, this time in relation to job numbers, but it appeared that obtaining the information was mandatory Ms North s last benefits-related task was to quantify the benefit of tracking labor hours by work center within each job She found that this information was only used by the industrial engineering staff They summarized the information into a report that listed the total hours worked at each work center, by day, so that it could determine when capacity utilization levels were reaching such heights that new equipment must be purchased or when levels were so low that existing equipment could be sold A brief discussion with the production scheduling staff revealed that standard capacity amounts per job were already stored in the labor routings of the facility s manufacturing resources planning (MRP II) system, which produced a similar report by multiplying the units in the production schedule by the hours per unit of production listed in the labor routings This meant that an alternative system could be used to provide the industrial engineering staff with the information it needed, without resorting to additional data entry to provide this information The cost accountant then perused a sample of time sheets submitted by employees and noted that an average of three work centers were referenced on each time sheet for each job on which work was performed If she could convince the management staff to eliminate the tracking of time by work center, she could cut the labor time spent on timekeeping by the direct labor employees by two-thirds, as well as similar amounts by the data-entry clerks who would otherwise have to.

To show why this update is adaptive with respect to the targets rmax , van der Linden and Veldkamp (2004) show that P j 1 Ei < P j Ei P j 1 Ei P j Ei P j 1 Ei > P j Ei if P j Ai > rmax if P j Ai rmax if P j Ai < rmax : 2:18

Accumulating Time Worked / 31