You Need to Determine the Population Variance of the Diameters

question 7

Multiple Choice

You need to determine the population variance of the diameters of a specialized electronic component used for a new product.Other studies indicate that the diameters of this product are roughly normally distributed.You take a sample of 15 units and find out that the sample average diameter is 0.24 mm, and the sample standard deviation is 0.2 mm.What is the 95% confidence interval for the population variance?

• A)0.0214 to 0.0995
• B)0.0230 to 0.1066
• C)0.1466 to 0.3154
• D)0.1666 to 0.3354
• E)0.1866 to 0.3554

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Definitions:

Direct Labor-Hours

The total number of labor hours spent by workers directly involved in the production process.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

Activity-Based Costing

A pricing strategy that attributes overhead and indirect expenses to associated goods and services by determining cost drivers.

Traditional Costing Method

An accounting approach that assigns manufacturing overhead costs to products based on volume-related measures such as direct labor hours or machine hours.