A Machine Is Set to Fill the Small-Size Packages of Smarties

question 133

Multiple Choice

A machine is set to fill the small-size packages of Smarties candies with 56 candies per bag. A sample revealed: four bags of 56, two bags of 57, one bag of 55, and two bags of 58. To test the hypothesis that the mean candies per bag is 56, how many degrees of freedom are there?

• A) 9
• B) 1
• C) 8
• D) 7

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Definitions:

Diseconomies of Scale

The situation in which a business grows so large that the costs per unit increase, as opposed to economies of scale where costs per unit decrease with the increase in output.

Long-Run Average Cost Curve

A graphical representation that shows the minimum average cost at which any output level can be produced after all inputs are adjustable. It reflects economies and diseconomies of scale.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit of output.

Search Engine

A software system designed to search for information on the World Wide Web.