The State Department of Weights and Measures Is Responsible for Making

question 5

Multiple Choice

The State Department of Weights and Measures is responsible for making sure that commercial weighing and measuring devices, such as scales, are accurate so customers and businesses are not cheated. Periodically, employees of the department go to businesses and test their scales. For example, a dairy bottles milk in 1-gallon containers. Suppose that if the filling process is working correctly, the mean volume of all gallon containers is 1.00 gallon with a standard deviation equal to 0.10 gallon. Based on this information, if the department employee selects a random sample of n = 9 containers, what is the probability that the mean volume for the sample will be greater than 1.01 gallons?

• A) 0.3821
• B) 0.1179
• C) 0.6179
• D) 0.2358

---

Definitions:

Variable Costs

Prices that adjust based on the quantity of products made or sold.

Pretax Income

Income earned by an entity before any taxes have been deducted.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, reflecting the fixed versus variable cost structure.

Clockworks Co.

A hypothetical or generic name that could be used to refer to a company specializing in mechanical devices, especially those involving gears and timekeeping mechanisms.