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By Law, a Box of Cereal Labeled as Containing 36

question 40

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By law, a box of cereal labeled as containing 36 ounces must contain at least 36 ounces of cereal. The machine filling the boxes produces a distribution of fill weights with a mean equal to the setting on the machine and with a standard deviation equal to 0.02 ounce. To ensure that most of the boxes contain at least 36 ounces, the machine is set so that the mean fill per box is 36.06 ounces.
Assuming nothing is known about the shape of the distribution, what can be said about the proportion of cereal boxes that contain less than 36 ounces.


Definitions:

Operating Activities

The portion of a company's cash flow statement that deals with the cash inflows and outflows from its core business operations.

Accounts Receivable

Money owed to a business by its customers for products or services delivered on credit.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over time.

Operating Activities Section

This section of a financial statement details the revenues and expenses directly related to the core business operations.

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