Weights of Chocolate Bars Narrative

question 116

Essay

Weights of Chocolate Bars Narrative
A candy bar factory is pouring chocolate into moulds to cool. The finished bars are sold as 35 gram bars. The company will lose money if the moulds are overfilled. If the moulds are underfilled, the weight of the candy bars will be less than the wrapper label says, and the company will be subject to a fine for misrepresenting the size of its product. The company wants to create an chart to monitor the weight of the candy bars. Suppose 5 samples are taken, each of size 30, having the sample means 36.1, 34.6, 35.8, 34.9, and 35.8 grams, respectively.
-Refer to Weights of Chocolate Bars Narrative. What are the control limits?

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Definitions:

Long-Term Investments-HTM

Investments classified as held-to-maturity (HTM) are financial assets a company intends and is able to hold until a fixed future date.

Short-Term Investment-AFS

Refers to Available-for-Sale short-term investments that are not classified as held-to-maturity or trading, and can be sold in response to liquidity needs or changes in interest rates.

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, and are thus recorded at fair value with changes reflected in other comprehensive income.

Historical Cost

The original monetary value of an asset, reflecting its cost at the time of acquisition, not adjusted for inflation or changes in market value.