Automobile Mechanics Conduct Diagnostic Tests on 150 New Cars of Particular

question 47

Multiple Choice

Automobile mechanics conduct diagnostic tests on 150 new cars of particular make and model to determine the extent to which they are affected by a recent recall due to
Faulty catalytic converters. They find that 42 of the new cars tested do have faulty
Catalytic converters. The 99% confidence interval for the true proportion of new cars
With faulty catalytic converters is

• A) 0.1856 to 0.3744
• B) 0.2434 to 0.3166
• C) 0.2081 to 0.3519
• D) 0.1660 to 0.3940
• E) 0.1243 to 0.4123

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities or materials that vary with production volumes.

Direct Labor-hours

The total amount of time spent by workers directly involved in the manufacturing of a product.

Variable Overhead Standards

The budgeted or standard costs associated with variable overheads, which are expected to change in proportion to different levels of production activity.

Direct Labor-hours

Represents the total hours of labor directly involved in manufacturing a product or delivering a service.