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Ensley, Inc

question 47

Essay

Ensley, Inc. makes and sells a single product, widgets. Three pounds of wackel are needed to make one widget. Budgeted production of widgets for the next few months follows:
September 29,000 units
October 31,000 units
The company wants to maintain monthly ending inventories of wackel equal to 20% of the following month's production needs. On August 31, 9,000 pounds of wackel were on hand.
Instructions
How much wackel should be purchased in September?


Definitions:

Population Proportion

A fraction or percentage that represents a part of the total population sharing a particular characteristic or attribute.

Sample Proportion

The fraction or percentage of the sample that represents a particular trait or characteristic.

Confidence Interval

An interval of values, obtained from the analysis of sample data, which is probable to include the value of an unspecified population parameter, within a given level of certainty.

Population Proportion

The ratio of members in a population that have a particular characteristic to the total number of members in the population.

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