Alpha Corporation Receives a Shipment of flOur Every Morning from Their

question 1

Multiple Choice

Alpha Corporation receives a shipment of flour every morning from their supplier. The flour is in 40
Kg bags and Alpha will reject any shipment that is more than 5% underweight. The foreman samples
35 bags with each shipment and if the bags average more than 5% underweight, the whole
Shipment is returned to the supplier. Determine the value for the standard error of the proportion.

• A) 0.0368
• B) 0.00095
• C) 0.0014
• D) 0.0471
• E) 0.00386

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials, energy usage, or labor directly associated with production.

Flash Frozen

A method of freezing food quickly at extremely low temperatures to preserve its quality, nutrients, and taste.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Expenditures that fluctuate in relation to business activity levels, including costs linked to production volume or service intensity.