The Department of Weights and Measures in a Southern State

question 50

Essay

The Department of Weights and Measures in a southern state has the responsibility for making sure that all commercial weighing and measuring devices are working properly.For example,when a gasoline pump indicates that 1 gallon has been pumped,it is expected that 1 gallon of gasoline will actually have been pumped.The problem is that there is variation in the filling process.The state's standards call for the mean amount of gasoline to be 1.0 gallon with a standard deviation not to exceed 0.010 gallons.Recently,the department came to a gasoline station and filled 10 cans until the pump read 1.0 gallon.It then measured precisely the amount of gasoline in each can.The following data were recorded: Based on these data what should the Department of Weights and Measures conclude if it wishes to test whether the standard deviation exceeds 0.010 gallons or not,using a 0.05 level of significance?

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Definitions:

Budgeted Income Statement

A financial report projecting revenue, expenses, and net income for a future period, based on management's expectations.

Budgeted Balance Sheet

A financial statement that projects the financial position of a company at a future date, showing expected assets, liabilities, and equity based on planned operations and initiatives.

Continuous Budget

A rolling budget for a 12-month period where the budget moves forward one month (or another period) as the current month (or period) is completed.

Perpetual Budget

A continuously updated budget that adjusts and rolls over to subsequent periods as the financial year progresses.