A Manufacturer Wants to Increase the Shelf Life of a Line

question 16

Multiple Choice

A manufacturer wants to increase the shelf life of a line of cake mixes. Past records indicate that the average shelf life of the mix is 216 days. After a revised mix has been developed,a sample of nine boxes of cake mix gave these shelf lives (in days) : 215,217,218,219,216,217,217,218,and 218. Using α = 0.025,has the shelf life of the cake mix increased?

• A)Yes,because computed t is greater than the critical value.
• B)Yes,because computed t is less than the critical value.
• C)No,because computed t lies in the region of acceptance.
• D)No,because 217.24 is quite close to 216.

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Definitions:

Flexible Budgeting

A budgeting process that adjusts to different levels of operation activities or volumes.

Direct Labor

The workforce directly involved in manufacturing products or providing services, whose costs are directly assignable to the goods or services produced.

Supervisor Salaries

Compensation paid to employees who are in charge of overseeing and managing other workers.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used to assess the availability of cash for operational needs.