A Potato Chip Manufacturer Has Found That in the Past

question 17

Multiple Choice

A potato chip manufacturer has found that in the past the standard deviation of bag weight has been 0.2 ounce.They want to test whether the standard deviation has changed.The null hypothesis is:

• A)H₀ : σ² = 0.2
• B)H₀ : σ = 0.2
• C)H₀ : σ = 0.04
• D)H₀ : σ² = 0.04

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Definitions:

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from net sales, representing the profit made before deducting operating expenses.

Cost of Goods Sold

The immediate expenses linked to the creation of products a business sells, comprising both material costs and labor charges.

Sales

Sales refer to the total amount of goods or services sold by a company within a specific period, generating revenue.

Inventory System

The set of policies and controls that monitors and manages every aspect of a company's inventory, from purchasing to production to sales.