A Local Company Makes a Candy That Is Supposed to Weigh

question 133

Multiple Choice

A local company makes a candy that is supposed to weigh 1.00 ounces. A random sample of 25 pieces of candy produces a mean of .996 ounces with a standard deviation of .004 ounces. How many pieces of candy must we sample if we want to be 99 percent confident that the sample mean is within .001 ounces of the true mean?

• A) 126
• B) 124
• C) 107
• D) 12
• E) 6

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Definitions:

Product Cost

Product cost refers to the total expenses incurred to create a product, including direct labor, materials, and allocated overhead.

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in product costs.

Fixed Costs

Expenses that do not change regardless of the level of production or sales, such as rent, salaries, and insurance.

Cost Control

A process of managing and regulating the expenses of operating a business to maximise profitability.