A Research and Development Laboratory Researcher for a Paint Company

question 51

Multiple Choice

A Research and Development Laboratory researcher for a paint company is measuring the level a certain chemical contained in a certain type of paint.If the paint contains too much of this chemical,the quality of the paint will be compromised.On the average,each can of paint contains 10% of the chemical,How many cans of paint should the sample contain if the researcher wants to be 98% certain of being within 1% of the true proportion of this chemical?

• A)4887
• B)1107
• C)26
• D)645

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Definitions:

Variable Selling

Costs associated with selling a product that vary directly with the volume of sales, such as commission fees.

Absorption Costing

A pricing strategy that incorporates all costs associated with production, including both variable and fixed expenses, into the product's cost.

Absorption Costing

The accounting methodology that integrates all costs related to manufacturing, including direct materials, direct labor, and both forms of manufacturing overhead—variable and fixed—into a product's total cost.

Variable Costing

A financial tracking method that considers just the variable operating costs (direct materials, direct labor, and variable manufacturing overhead) in the pricing of merchandise.