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 50 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) 0.03082
B) 0.0095
C) 0.00707
D) 0.00095
E) 0.09747

Question

Quizplus · Accepted Answer

The standard error of the proportion is given by the formula sqrt(p(1-p)/n), where p is the proportion of underweight bags and n is the sample size. In this case, p = 0.05 and n = 50, so the standard error of the proportion is sqrt(0.05(1-0.05)/50) = 0.03082.

Alpha Corporation Receives a Shipment of Flour Every Morning from Their