A Manufacturer of Cream Filled Donuts Wants to Make Sure

question 21

Multiple Choice

A manufacturer of cream filled donuts wants to make sure that its automatic filling process is on target. Based on a sample of 25 donuts the mean weight of cream filling is
Estimated to be 15 grams with a standard deviation of 1.5 grams. However, the quality
Control inspectors wish to estimate the mean weight of cream filling more accurately so
That they can be 99% confident that it is within 0.25 grams of the true mean. How many
Donuts should they sample?

• A) 150
• B) 543
• C) 212
• D) 410
• E) 239

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Definitions:

Horizontal Analysis

A financial analysis technique used to evaluate trends over time by comparing line items in financial statements, such as assets, liabilities, and equity, across multiple periods.

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its current assets.

Permanent Inventory Loss

Losses resulting from discrepancies between actual stock levels and recorded inventory due to theft, damage, or miscounting that cannot be recovered.

Quarterly Income Statement

A financial report that shows the revenue, expenses, and net income of a company over a three-month period.