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

question 105

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 60% of the jawbreakers it produces weigh more than .4 ounces. Suppose that 800 jawbreakers are selected at random from the production lines. Would it be unusual for this sample of
800 to contain 399 jawbreakers that weigh more than .4 ounces?

• A) Yes
• B) No

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Definitions:

Quality Assurance

A systematic process designed to determine whether a product or service meets specified quality standards.

Traditional Product Costing Systems

Costing methods that typically allocate overhead costs based on a single volume-based cost driver, which may not accurately reflect the actual resources consumed by products.

Activity Rates

Predetermined charges used in activity-based costing to allocate costs to products or services based on the activities required for their production.

Quality Inspection

The process of examining and testing goods or services to ensure they meet specified standards of quality before they are sold or delivered.