Discuss the Applications of Confidence Interval Estimation
Use the Table

question 7

Multiple Choice

Discuss the applications of confidence interval estimation
Use the table below to answer the following question(s) .
The historical data of Velvetta Inc., a healthcare products manufacturer, have shown that in a production process for filling bottles of shampoo, variance in the volume is constant; however, clogs in the filling machine often affect the mean volume. The historical standard deviation is 5 milliliters. In filling 250-milliliter bottles, a sample of 20 found a meanvolume of 242 milliliters. $$\begin{array} { | l | l | } \hline \text { Velvetta Inc. Shamp o0 } & \\\text { Production } & \\\hline \text { Alpha Vahe } & 0.05 \\\hline \text { Standard Deviation } & 5 \\\hline \text { Sample Size } & 20 \\\hline \text { Sample Mean } & 242 \\\hline\end{array}$$
-From the table above, determine the cumulative probability for z at a 95% confidence level.

• A) 0.975
• B) 0.950
• C) 1
• D) 0.987

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Definitions:

Retained Earnings Balance

The amount of net earnings left in a company after dividends have been paid out to shareholders, which is used for reinvestment in the business or to pay down debt.

Audit Committee

A subcommittee of the board of directors responsible for overseeing and ensuring the integrity of financial reports and compliance with legal and regulatory requirements.

Internal Audit Staff

A department or team within a company that conducts independent evaluations of its operations, controls, and compliance with laws and regulations.

Accounting Errors/Irregularities

Unintentional or intentional misstatements or omissions in financial statements resulting from oversight, misinterpretation, or fraud.