The Chief Chemist for a Major Gasoline Production Company Claims

question 76

Multiple Choice

The chief chemist for a major gasoline production company claims that the regular unleaded gasoline produced by the company contains on average 4 ounces of a certain ingredient. The chemist further states that the distribution of this ingredient per gallon of regular unleaded gasoline is normal and has a standard deviation of 1.2 ounces. What is the probability of finding an average of less than 3.85 ounces of this certain ingredient from 64 randomly inspected 1-gallon samples of regular unleaded gasoline?

• A) .1587
• B) .8413
• C) .1357
• D) .8643

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Definitions:

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable which may not be collectible.

Specific Receivable

A receivable account that is clearly identified and attributed to a specific source, such as an individual customer or entity.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.

Maturity Date

The predetermined date on which a financial instrument, such as a loan or bond, is due to be repaid in full.