The State Department of Weights and Measures Is Responsible for Making

question 92

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 gallons.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,suppose that the dairy wants no more than a 0.05 chance of being fined,which of the following options exist if they can't alter the filling standard deviation?

• A)They can convince the state to decrease the sample size.
• B)They can change the mean fill level to approximately 1.025 gallons.
• C)They could lower the mean fill level to a level lower than 1 gallon.
• D)There is actually nothing that they can do if they can't modify the standard deviation.

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling goods and services, which are reflected in the cash flow statement.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, usually on a quarterly basis, representing a portion of the corporate profits.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Direct Method

A cash flow statement preparation method that reports major classes of gross cash receipts and payments. This method is one of two standards for creating the statement of cash flows.