A Carload of Steel Rods Has Arrived at Cybermatic Construction

question 75

Multiple Choice

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong,manager of Quality Assurance,directs his crew measure the lengths of 100 randomly selected rods. If the population of rods have a mean length of 120 inches and a standard deviation of 0.05 inch,the probability that Claude's sample has a mean less than 119.985 inches is _____________.

• A) 0.9974
• B) 0.0026
• C) 0.4987
• D) 0.0013
• E) 0.0030

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Definitions:

Break-even Point

The point at which total costs equal total revenue, resulting in no net loss or gain for the business.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Fixed Costs

Costs that do not change in total despite changes in the volume of goods or services produced or sold.

Margin of Safety

The difference between actual or projected sales and the break-even point. It measures the amount by which sales can decline before a business incurs a loss.