Snack Food Companies Always Have a Target Weight When Filling

question 66

Essay

Snack food companies always have a target weight when filling a box of snack crackers. It is not possible, however, to always fill boxes to the exact target weight. For a particular box of crackers, the target weight is 14 ounces. The filling machine drops between 13.5 and 15 ounces of crackers into each box. If these weights are uniformly distributed, what is the expected value of the fill weights? Does this value match the target weight? If not, what impact does this difference have on the manufacturer's costs to produce these crackers?

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Definitions:

Securities Act

A federal piece of legislation enacted in 1933 that regulates the offer and sale of securities to protect investors from fraud.

Controlling Person

An individual or entity that has the power to direct or influence the management and policies of a company, typically through ownership of a significant portion of voting shares.

Affirmative Defense

A defendant’s response to a plaintiff’s claim in which the defendant attacks the plaintiff’s legal right to bring the action rather than attacking the fact of the claim or making excuses for unlawful behavior. Common

GAAS

Generally Accepted Auditing Standards, which are guidelines that auditors follow when conducting audits on companies' finances.