Question

An insurance adjuster processes the claims of six policy holders in an eight hour work day. The adjuster uses $5 in gasoline and $3 in forms and office supplies to complete the work. What is her labor productivity?

a) $1 per claim
b) 1 claim per dollar
c) 1.33 hours per claim
d) 0.75 claims per hour

Answer 1

Answer:

D

Step-by-step explanation:

Labor productivity is is measured per hours.

Hence, the work he does [amount of claims] will be distributed amongst the amount of hours he works. The amount of dollar he uses doesn't matter for labor productivity.

Thus, his work is 6 claims. He does that is 8 hours. So claim/hr is:

6/8 = 0.75 claims per hour

Answer choice D is right.