A Local Company Makes a Candy That Is Supposed to Weigh

question 11

Multiple Choice

A local company makes a candy that is supposed to weigh 1.00 ounces.A random sample of 25 pieces of candy produces a mean of 0.996 ounces with a standard deviation of 0.004 ounces.How many pieces of candy must we sample if we want to be 99 percent confident that the sample mean is within 0.001 ounces of the true mean?

• A) 126
• B) 124
• C) 107
• D) 12
• E) 6

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position of a parent company and its subsidiaries into one document, showing the overall health of the corporate group.

Inventory Purchase

The acquisition of goods and materials that a company intends to sell, considered as a current asset on the balance sheet.

Perpetual Inventory Method

A method of accounting that instantly documents the sale or acquisition of inventory utilizing computerized point-of-sale systems and software for managing enterprise assets.

Gross Profit Rate

The ratio of gross profit (sales minus cost of goods sold) to net sales, showing the efficiency at which a company produces its goods.