The State Department of Weights and Measures Is Responsible for Making

question 124

Multiple Choice

The State Department of Weights and Measures is responsible for making sure that commercial weighing and measuring devices, such as scales, are accurate so customers and businesses are not cheated. Periodically, employees of the department go to businesses and test their scales. For example, a dairy bottles milk in 1-gallon containers. Suppose that if the filling process is working correctly, the mean volume of all gallon containers is 1.00 gallon with a standard deviation equal to 0.10 gallon. The department's test process requires that they select a random sample of n = 9 containers. If the sample mean is less than 0.97 gallons, the department will fine the dairy. Based on this information, what is the probability that the dairy will get fined even when its filling process is working correctly?

• A) 0.90
• B) Approximately 0.3159
• C) About 0.1841
• D) Approximately 0.3821

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Definitions:

Members

Owners of a limited liability company.

Articles of Organization

Legal documents filed with a state government to officially start a limited liability company (LLC) and outline its structure and operation.

Joint Stock Company

A partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners.

Limited Liability Company

An organizational model blending the direct taxation advantage of partnerships or sole proprietorships with the restricted liability characteristic of corporations.