Find the Sample Size

question 20

Multiple Choice

Find the sample size.
-Grandma Gertrude's Chocolates, a family owned business, has an opportunity to
Supply its product for distribution through a large coffee house chain. However, the
Coffee house chain has certain specifications regarding cacao content as it wishes to
Advertise the health benefits (antioxidants) of the chocolate products it sells. Past data
Indicate a standard deviation of 4%. If quality control inspectors wish to estimate the %
Cacao to within 1% of the true mean with 95% confidence, how many pieces of
Chocolate should they sample?

• A) 29
• B) 62
• C) 54
• D) 89
• E) 36

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Definitions:

Variable Manufacturing Overhead

Costs that vary with production output, such as utilities for the manufacturing plant, which are not directly tied to specific units produced.

Fixed Manufacturing Overhead

The production costs that do not vary with the volume of production, such as salaries of managers and depreciation of equipment.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of interest and taxes.

Direct Labour

The wages or salaries paid to employees who are directly involved in the manufacturing or production of goods.