The Chief Chemist for a Major Oil and Gasoline Production

question 18

Multiple Choice

The chief chemist for a major oil and gasoline production company claims that the regular unleaded gasoline produced by the company contains on average 4 ounces of a certain ingredient.The chemist further states that the distribution of this ingredient per gallon of regular unleaded gasoline is normal and has a standard deviation of 1.2 ounces.What is the probability of finding an average less than 3.85 ounces of this ingredient from 64 randomly inspected 1-gallon samples of regular unleaded gasoline?

• A).1587
• B).8413
• C).1357
• D).8643

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Definitions:

Purchases Discounts

Reductions in price given by suppliers to businesses when they buy goods or services, often provided for early payment.

Freight In

The cost associated with the transportation of goods or materials into a business, typically considered part of the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Periodic Method

An inventory accounting method where the inventory balance is updated at the end of each period after a physical count.