A Local Company Makes a Candy That Is Supposed to Weigh

question 88

Multiple Choice

A local company makes a candy that is supposed to weigh 1.00 gram.A random sample of 25 pieces of candy produces a mean of 0.996g with a standard deviation of 0.004g.If candy weight is normally distributed,how many pieces of candy must we sample if we want to be 99% confident that the sample mean is within 0.001g of the true mean?

• A)126
• B)124
• C)107
• D)12
• E)6

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Definitions:

Adjusting Entries

Journal entries made in an accounting period to allocate income and expenditure to the correct periods.

Profit Margin

A financial metric depicting the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a business.

Net Sales

Company sales revenue post deduction of returns, allowances for imperfections or absences, and discounts.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.