Use the Table Below to Answer the Following Questions) -From the Table Above, Calculate the Lower Confidence Interval Estimate

question 30

Multiple Choice

Use the table below to answer the following questions) .
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 mean volume of 242 milliliters. $$\begin{array}{l}\begin{array} { | l | l | } \hline\text { Velvetta Inc. Shampon }\\ \text { Productim } & \\\hline \text { Alpha Vulue } & 0.05 \\\hline \text { Standard Deviation } & 5 \\\hline \text { Sample Size } & 20 \\\hline \text { Sample Mean } & 242 \\\hline\end{array}\end{array}$$
-From the table above, calculate the lower confidence interval estimate at a confidence level of 95%

• A) 239.49
• B) 240.16
• C) 239.81
• D) 240.04

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Definitions:

Returns to Scale

The change in output resulting from a proportional change in all inputs, where increases can be constant, increasing, or decreasing.

Long-Run Average Cost

The average cost per unit of output where all inputs, including capital, are variable in the long term.

Marginal Cost

The costs entailed in generating an extra unit of a product or service.

Economies of Scale

The reduction in per-unit production costs resulting from an increase in the scale of production.