The Weight of a Product Is Normally Distributed with a Standard

question 29

Multiple Choice

The weight of a product is normally distributed with a standard deviation of .5 ounces. What should the average weight be if the production manager wants no more than 10 percent of the products to weigh more than 4.8 ounces?

• A) 3.52
• B) 3.64
• C) 5.44
• D) 4.16

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Definitions:

Net Present Value Method

The Net Present Value Method is a financial analysis tool used to evaluate the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Future Cash Inflows

Projected future earnings or receipts in cash form, anticipated from investments, operations, or financing.

Cash Outflows

Money paid out by a business for its operational and investment activities.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.