In a Manufacturing Process,we Are Interested in Measuring the Average

question 89

Multiple Choice

In a manufacturing process,we are interested in measuring the average length of a certain type of bolt.Past data indicates that the lengths are normally distributed with standard deviation 0.25cm.How many bolts should be sampled in order to make us 95% confident that the sample mean bolt length is within 0.02cm of the true mean bolt length?

• A)25
• B)49
• C)423
• D)601
• E)1225

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Definitions:

Increasing Costs

Increasing Costs refer to a scenario where a company experiences a rise in the price of inputs or operational expenses over time, which can affect profitability.

Lower of Cost or Market

An accounting principle that values inventory at the lesser of its historical cost or current market value, used to ensure assets are not overstated.

Inventory Value

The monetary value of all the goods that a company has in stock, not yet sold.

Total Inventory

The complete value of a company's raw materials, work-in-progress, and finished goods at a given time.