The Makers of Mini-Oats Cereal Have an Automated Packaging Machine

question 144

Multiple Choice

The makers of Mini-Oats Cereal have an automated packaging machine that can be set at any targeted fill level between 12 and 32 ounces. Every box of cereal is not expected to contain exactly the targeted weight, but the average of all boxes filled should. At the end of every shift (eight hours) , 16 boxes are selected at random and the mean and standard deviation of the sample are computed. Based on these sample results, the production control manager determines whether the filling machine needs to be readjusted or whether it remains all right to operate. Use α = 0.05. Establish the appropriate null and alternative hypotheses to be tested for boxes that are supposed to have an average of 24 ounces.

• A) H0 : μ = 32 ounces Ha : μ ≠ 32 ounces
• B) H0 : μ = 16 ounces Ha : μ ≠ 16 ounces
• C) H0 : μ = 22 ounces Ha : μ ≠ 22 ounces
• D) H0 : μ = 24 ounces Ha : μ ≠ 24 ounces

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Definitions:

Salvage Value

The calculated residual valuation of an asset at the end of its service life.

Insurance Claim

A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.

Trade-In Allowance

The amount credited to the buyer when they exchange an asset towards the purchase of a new asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.