An Egg Packing Company Has Stated That the Standard Deviation $\alpha$

question 44

Essay

An egg packing company has stated that the standard deviation of the weights of their grade A large eggs is 0.07 ounces or less. The sample variance for 51 eggs was 0.0065 ounces. Can this sample result confirm the company's claim?
Use $\alpha$ = 0.1.

---

Definitions:

Marginal Cost

The amount of money needed to create an additional unit of a product or service.

Average Total Costs

The total costs of production (fixed and variable) divided by the quantity of output produced.

Total Fixed Costs

The sum of all costs that do not change with the level of production or services provided, such as rent and salaries.

Average Variable Cost

The total variable cost of producing a good divided by the quantity of the good produced, representing the variable cost per unit.