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Alpha Corporation receives a shipment of flour every morning from their supplier. The flour is in...

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 4% underweight. The foreman samples 60 bags with each shipment and the bags average more than 4% underweight, the whole shipment is returned to the supplier. Determine the value for the standard error of the proportion

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Answer:

Given that,

Proportion (p) = 0.04

Sample size (n) = 60

To find standard error of the proportion (SEp)

= sqr(0.04(1-0.04)/60)

= 0.025298

~ 0.0253

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