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A Previous Analysis of Paper Boxes Showed That the The Standard

question 68

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A previous analysis of paper boxes showed that the the standard deviation of their lengths is 15 millimeters. A packer wishes to find the 90% confidence interval for the average length of a box. How many boxes does he need to measure to be accurate within 3 millimeters?


Definitions:

Direct Materials

Direct Materials are raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Work in Process Inventory

Items currently undergoing production but have not yet reached completion.

Lower of Cost

A principle requiring that inventory be recorded at the lower of its historical cost or current market value.

Net Realisable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale, used primarily in inventory valuation.

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