Alpha Corporation Receives a Shipment of Flour Every Morning from Their

question 49

Multiple Choice

Alpha Corporation receives a shipment of flour every morning from their supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more than 5% underweight. The foreman samples 60 bags with each shipment and if the bags average more than 5% underweight, the whole shipment is returned to the supplier. Determine the value for the standard error of the proportion.

• A) 0.02814
• B) 0.01504
• C) 0.00792
• D) 0.08898
• E) 0.1234

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Quantity Demanded

The overall volume of a specific good or service that consumers intend and have the means to acquire at a given price.

Unit Elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, leading to a unitary elasticity of demand.