The Fallbrook Distributing Company Has a Soft Drink Bottling Plant

question 103

True/False

The Fallbrook Distributing Company has a soft drink bottling plant in Plano,Texas.Based on historical records,if its filling machine is working properly,the mean fill volume per can is 12.0 ounces with a standard deviation equal to 0.13 ounces.Further,the distribution of fill amounts is known to be normally distributed.The State of Texas has a department whose job it is to check on such consumer-related processes as soft drink filling.The idea is to protect the consumer.The department arrives at the Fallbrook plant once a month on an unscheduled day.When they arrive,they randomly select n = 4 cans and carefully measure the volume in each can.If any of these cans contains less than 11.85 ounces,the plant is shut down until a full inspection of the filling process is performed.Based on this information,the probability that the plant will get shut down if it is operating properly is approximately 0.4141.

---

Definitions:

Taxable Temporary Difference

A difference between the carrying amount of an asset or liability in the balance sheet and its tax base, which will result in taxable amounts in future periods when the carrying amounts are recovered or settled.

Plant Asset

Long-term tangible assets used in the operations of a business, such as machinery, buildings, and equipment, often subject to depreciation.

Group's

Referring to entities or assets owned or controlled by a collection of individuals or a parent company operating as a single economic entity.

Intragroup Dividends

Dividends paid between companies within the same group, which may have implications for the group's consolidated financial statements.