Two Companies, a and B, Package and Market a Chemical $\quad$

question 251

Multiple Choice

Two companies, A and B, package and market a chemical substance and claim 0.15 of the total weight of thesubstance is sodium. However, a careful survey of 4,000 packages (half from each company) indicates that theproportion varies around 0.15, with the results shown below. Find the percentage of all chemical B packagesthat contain a sodium total weight proportion above 0.150. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Proportion of Sodium }$
$\begin{array}{cccccc}\hline & <0.100 & 0.100-0.149 & 0.150-0.199 & >0.200 \\\hline & \text { A } & 25 \% & 10 \% & 10 \% & 5 \% \\{\text { Chemcal Brand }}\\& \text { B } & 5 \% & 5 \% & 10 \% & 30 \%\end{array}$

• A) 80%
• B) 40%
• C) 50%
• D) 55%

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Definitions:

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender as a condition for a loan, intended to compensate the bank for providing the loan or credit line.

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the compounding of interest over time, as opposed to the nominal interest rate.

Short-Term Bank Loan

A loan obtained from a bank that has a short repayment period, typically less than one year.

Best Course of Action

The most suitable or advantageous strategy or decision to take in a given situation.