The Manager of a Grocery Store Wants to Determine Whether $\alpha$

question 18

Multiple Choice

The manager of a grocery store wants to determine whether the amount of water contained in 1 gallon bottle purchased from a nationally known manufacturer actually average 1 gallon.It is known from the manufacturer's specifications that the standard deviation of the amount of water is equal to 0.02 gallon.A random sample of 32 bottles is selected,and the mean amount of water per 1 gallon can is found to be 0.995 gallon.Calculate a confidence interval to test the hypotheses at $\alpha$ = .001.

• A)[0.987 1.003]
• B)[0.986 1.004]
• C)[0.984 1.006]
• D)[0.983 1.007]
• E)[0.988 1.002]

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Definitions:

Incremental Cash Flows

The additional cash inflows or outflows expected from a new project or investment, crucial for determining its net present value.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets, to maximize returns and shareholder value.

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, excluding any cash flows not directly attributable to the project.

Cash Expense

Expenses that require immediate outlay of cash during an accounting period.