SCENARIO 6-4 a Company Producing Orange Juice Buys All Its Oranges from Oranges

question 147

Short Answer

SCENARIO 6-4
A company producing orange juice buys all its oranges from a large orange orchard. The amount of
juice that can be squeezed from each of these oranges is approximately normally distributed with a
mean of 4.7 ounces and some unknown standard deviation. The company's production manager
knows that the probability is 30.85% that a randomly selected orange will contain less than 4.5
ounces of juice. Also the probability is 10.56% that a randomly selected orange will contain more
than 5.2 ounces of juice. Answer the following questions without the help of a calculator, statistical
software or statistical table.
-Referring to Scenario 6-4, what is the probability that a randomly selected orange will contain
between 4.5 and 5.2 ounces of juices?

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Definitions:

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, typically suitable for uniform products.

Prime Costs

The combination of direct materials and direct labor costs.

Direct Labor

This term refers to the labor costs associated with workers who are directly involved in the production of goods or services.

Direct Materials

Materials directly linked to the production of a product, constituting a major part of the manufacturing expenses.