How Much Fat Do Reduced Fat Cookies Typically Have? You

question 62

Multiple Choice

How much fat do reduced fat cookies typically have? You take a random sample of 120 reduced-fat cookies and test them in a lab,finding a mean fat content of 4.2 grams.You calculate a 95% confidence interval and find that the margin of error is ±0.8 grams.

• A)95% of reduced fat cookies have between 3.4 and 5 grams of fat.
• B)We are 95% sure that the average amount of fat in the cookies in this study was between 3.4 and 5 grams.
• C)We are 95% confident that the mean fat in all cookies is between 3.4 and 5 grams.
• D)95% of the cookies in the sample had between 3.4 and 5 grams of fat.
• E)You are 95% confident that the mean fat in reduced fat cookies is between 3.4 and 5 grams of fat.

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Definitions:

Fixed Costs

Expenses that remain constant in total regardless of changes in the level of business activity or output.

Net Income

The total amount of profits earned by a company after all expenses and taxes have been deducted from revenue.

Special Order

A one-time order that is not considered part of the company's normal ongoing operations, often requiring special pricing or terms.

Incremental Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.