The Manager of the College Cafeteria Wants to Estimate the Mean

question 53

Multiple Choice

The manager of the college cafeteria wants to estimate the mean amount spent per customer per
Purchase. A sample of 10 customers revealed the following amounts spent:
Find the 99 percent confidence limits for the mean amount spent.
Sample mean = $4.53, s = $1.00

• A) 3.53 and 5.53
• B) 3.50 and 5.56
• C) 3.48 and 5.58
• D) 3.84 and 5.85
• E) 3.35 and 5.35

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Definitions:

Weighted Average Process Costing

A method of cost accounting used in production where costs for materials, labor, and overhead are averaged over the units produced, taking into consideration the degree of completion.

Conversion Costs

Expenses related to converting raw materials into finished goods, including labor and overhead costs.

Opening Inventory

The value or quantity of goods on hand at the beginning of an accounting period.

FIFO Process Costing

A method of process costing that assumes the first items produced are the first sold or used, ideal for businesses where inventory shelf life is a concern.