A Statistical Quality Control Process for Cereal Production Measures the Weight

question 78

Multiple Choice

A statistical quality control process for cereal production measures the weight of a cereal box. The population standard deviation is known to be .06 ounces. In order to achieve 97 percent confidence with a margin of error of .02 ounces, how large a sample should be used?

• A) 32
• B) 43
• C) 7
• D) 664

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Definitions:

Call

A contract that grants the holder the ability, though not the requirement, to purchase a certain quantity of an underlying asset at a predetermined price before a specified deadline.

Exercise Price

The set price at which an option's holder has the right to purchase (call) or sell (put) the underlying asset.

Stock Price

indicates the current price at which a share of a company can be bought or sold on a stock exchange.

Issue Value

The price at which a new issue of securities is offered for sale to the public or the nominal value of a security at the time of its issuance.