Kellogg's Has Several Cereals Targeted at Different Types of Users

question 14

Multiple Choice

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it meets customers' needs better, doesn't reduce quality or increase price, and

• A)conforms to all FDA guidelines.
• B)adds to the manufacturer's sales revenues and profits.
• C)creates economy of scale.
• D)decreases the cost of the physical plant.
• E)stabilizes the sales revenues and profits.

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Definitions:

Sample Statistic

A sample characteristic, such as a sample mean x, a sample standard deviation s, a sample proportion p, and so on. The value of the sample statistic is used to estimate the value of the corresponding population parameter.

Simple Random Sample

A segment of a statistical population where every individual in the segment is equally likely to be selected.

Infinite Population

A population size that is so large it is considered limitless for practical statistical purposes, often used in theoretical models.

Independently

Without being influenced or affected by other factors or variables.