A Cereal Manufacturer Is Concerned That the Boxes of Cereal $\alpha$

question 45

Multiple Choice

A cereal manufacturer is concerned that the boxes of cereal not be under filled or overfilled.Each box of cereal is supposed to contain 13 ounces of cereal.A random sample of 31 boxes is tested.The average weight is 12.58 ounces and the standard deviation is 0.25 ounces.What is the critical value for testing these hypotheses at $\alpha$ = .001.

• A)1.28
• B)1.645
• C)2.575
• D)3.09
• E)3.291

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Definitions:

Spending Variance

The difference between the budgeted or standard cost of something and its actual cost.

Supplies Cost

The total expense incurred from acquiring supplies necessary for the operation of a business, including office, cleaning, and manufacturing supplies.

Activity Variance

The difference between the budgeted amount of an activity and its actual cost or output.

Cost Formula

An equation used to calculate the total cost of producing goods or services by accounting for both fixed and variable costs.