A Manufacturer of a Chemical Used in Glue, Attempting to Control

question 157

Multiple Choice

A manufacturer of a chemical used in glue, attempting to control the amount of a hazardous chemical its workers are exposed to, has given instructions to halt production if the mean amount in the air exceeds 3.0ppm. A random sample of 50 air specimens produced the following statistics: sample mean = 3.1 ppm, sample standard deviation = 0.5 ppm. Assume measurements are normally distributed.
-How much evidence is there that the mean is greater than 3 ppm?

• A)No evidence
• B)Some evidence
• C)Strong evidence
• D)Very strong evidence
• E)Extremely strong evidence

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Definitions:

Short-Term Debt

Loans or borrowings that are due for repayment within a short timeframe, typically within one year, used for immediate financing needs.

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but retained by the company for reinvestment.

MACRS 3-Year Class

A category under the Modified Accelerated Cost Recovery System (MACRS) for depreciating certain types of business property over three years.

Amortized

Amortization is the process of spreading out a loan into a series of fixed payments over time, covering both principal and interest.