The Manager of a Grocery Store Wants to Determine Whether

question 40

Essay

The manager of a grocery store wants to determine whether the amount of water contained in 1-gallon bottles purchased from a nationally known manufacturer actually averages 1 gallon.It is known from the 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 bottle is found to be 0.995 gallon.Calculate the p-value and test whether the specifications are being met at α = .001 using the p-value rule.

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, after accounting for depreciation, amortization, or impairment.

Held-To-Maturity

A classification for investment securities which the investor has the intent and ability to hold until they mature.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.

Debt Securities

Financial instruments representing money owed by the issuer to the holder, typically in the form of bonds, bills, or notes.