Answer:
Enjoy and it would be good if you gave more points
Step-by-step explanation:
The correct answer would be B because it is is written in correct simplified format
The ordering-quantity that should be recommended will be 117 units.
<h3>How to calculate the order quantity?</h3>
The following can be deduced from the information given:
Demand = 679
Ordering cost = 7
Holding cost = 10%
Ordering quantity will be:
= ✓(2 × Demand × Ordering cost / Holding cost)
= ✓(2 × 679 × 7/0.1)
= ✓13580
= 116.53
= 117
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By testing the hypothesis we can conclude that the bag does not contain 11 kg of food.
Given mean of 10.6 kg, population standard deviation of 0.6 and sample size of 25.
We are required to find whether the company is right in saying that their bags contain 11 kg of food.
First we have to make hypothesis.
:μ≠11
:μ=11
We have to use t statistic because the sample size is less than 30.
t=(X-μ)/s/
We will use s/=0.6 because we have already given population standard deviation of weights.
t=(11-10.6)/0.6
=0.4/0.6
=0.667
Degree of freedom=n-1
=25-1
=24
T critical at 0.05 with degree of freedom 24=2.0639
T critical at 0.05 with degree of freedom is greater than calculated t so we will accept the null hypothesis.It concludes that the bags donot contain 11 kg of food.
Hence by testing the hypothesis we can conclude that the bag does not contain 11 kg of food.
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