A Researcher for a Paint Company Is Measuring the Level

question 128

Multiple Choice

A researcher for a paint company is measuring the level of a certain chemical contained in a certain type of paint.If the paint contains too much of this chemical,the quality of the paint will be compromised.On average,each can of paint contains 10 percent of the chemical.How many cans of paint should the sample contain if the researcher wants to be 98 percent certain of being within 1 percent of the true proportion of this chemical?

• A)4870
• B)1107
• C)26
• D)645

Recognize the significance and approach of Lean Process Improvement.

Identify the objectives and techniques of Six Sigma.

Comprehend the concept and application of the Zero-Defects Approach.

Grasp the importance of employee involvement teams in improving business processes.

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Definitions:

Accounts Receivable Turnover

A measure of how quickly a company collects cash from its customers, calculated as sales divided by the average accounts receivable.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, used by investors to evaluate the relative value of a company's shares.

Working Capital

Current assets less current liabilities.

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.