Determine If the Outcome Is Unusual $\mu - 2 \sigma$ Or Greater Than

question 152

Multiple Choice

Determine if the outcome is unusual. Consider as unusual any result that differs from the mean by more than 2 standard deviations. That is, unusual values are either less than $\mu - 2 \sigma$ or greater than $\mu + 2 \sigma$ .
-The Acme Candy Company claims that 8% of the jawbreakers it produces actually result in a broken jaw. Suppose 9571 persons are selected at random from those who have eaten a jawbreaker produced at Acme Candy Company. Would it be unusual for this sample of 9571 to contain 792 persons with broken jaws?

• A)No
• B)Yes

---

Definitions:

Activity Changes

Variations in the level of operations or production within a company, which can impact financial performance and management strategies.

Rental Charges

Fees incurred for the use of property or equipment that is not owned, usually on a periodic basis such as monthly or yearly.

Machine Hour

A unit of measure representing one hour of operating time for a machine, used in allocating manufacturing costs.

Fixed Cost

Operating expenses that do not change in proportion to the level of production or sales activity, such as rent or salaries.