The u.s. census bureau announced that the population mean sales of houses was $322,100. assume that the standard deviation of the prices is $90,000. if you select a sample size of 100, what’s the cumulative probability that the sample mean will be less than $346,000 for all possible house samples?

P(z < 2.66) = 0.9960

Explanation:

Given that

population mean = 322,100

standard deviation = 90,000

sample mean = 346,000

n = 100

Standard error of mean:

= 9000

z = 2.66

P(z < 2.66) = 0.9960

Above value is computed from the z-tables.

A (5,250) sold at split-off

B 22,625 continue

C (10,400) sold at split-off

Explanation:

Result for further processing:

quantity ( further process price - raw price) less further processing cost

Product A

13,800 pounds x (29.5 - 24) - 81,150 = (5,250)

Product B

21,500 pounds (24.50 - 18) - 117,125 = 22,625

Product C

5,000 gallon ( 38.5 - 30) - 52,900 = (10,400)

We must understand that the join processing cost are already incurred (sunk) therefore, not relevant. We hould check if the further process increases or not the gross profit.

As B is the only which increase the gross profit we continue the processing. THe other product based on our cost structure are not viable