The Coffee/soup Machine at the Local Bus Station Is Supposed

question 87

Multiple Choice

The coffee/soup machine at the local bus station is supposed to fill cups with 6 ounces of soup.Ten cups of soup are brought with results of a mean of 5.93 ounces and a standard deviation of 0.13 ounces.Construct a 99% confidence interval for the true machine-fill amount.

• A)[5.888 5.972]
• B)[5.814 6.046]
• C)[5.716 6.144]
• D)[5.824 6.036]
• E)[5.796 6.064]

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Definitions:

TC

An abbreviation for Total Cost, it quantifies the overall expense incurred in the production of goods or services, encompassing both fixed and variable costs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, often due to complexities and inefficiencies at larger scales.

Long-Run Average Total Cost

The cost per unit of output incurred when all factors of production, including capital, are variable, indicating the lowest possible cost of production for each level of output when the scale of operation is changed.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, including costs for materials, labor, and energy.