Sale of Spinach That Is Contaminated with E Coli Can

question 54

Multiple Choice

Sale of spinach that is contaminated with e coli can cause food poisoning among consumers. A food inspector takes an SRS of 400 bags from all the bags of spinach shipped in one day. The laboratory reports that 19 of these bags had e coli contamination. Unknown to the producer, 1 percent of all bags shipped had e coli.
Based on the sample data, the producer estimates that the proportion of contaminated bags in the population is about:

• A) 19 percent
• B) 1.9 percent
• C) 1 percent
• D) 4.8 percent
• E) 0.3 percent

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services, generating the primary revenue stream.

Ending Inventory

The cost of merchandise on hand for selling when an accounting cycle ends.

Cost of Goods Sold

The immediate expenses associated with manufacturing goods that a company sells.

Purchases

The acquisition of goods or services in exchange for money, constituting a component of a company’s inventory costs.