CASE PROBLEM1: GO BANANAS! BREAKFASTCEREALGreat Grasslands Grains, Inc. (GGG) manufactures and sells a wide variety of breakfastcereals. GGG's product development lab recently created a new cereal that consists of riceflakes and banana-flavored marshmallows. The company's marketing research departmenthas tested the new cereal extensively and has found that consumers are enthusiastic aboutthe cereal when 16-ounce boxes contain at least 1.6 ounces and no more than 2.4 ounces ofthe banana-flavored marshmallows.As GGG prepares to begin producing and selling 16-ounce boxes of the new cereal,which it has named Go Bananas!, management is concerned about the amount of ba-nana-flavored marshmallows. It wants to be careful not to include less than 1.6 ouncesor more than 2.4 ounces of banana-flavored marshmallows in each 16-ounce box of GoBananas! Tina Finkel, VP of Production for GGG, has suggested that the company meas-ure the weight of banana-flavored marshmallows in a random sample of 25 boxes of GoBananas! on a weekly basis. Each week, GGG can count the number of boxes out of the25 boxes in the sample that contain less than 1.6 ounces or more than 2.4 ounces of ba-nana-flavored marshmallows; if the number of boxes that fail to meet the standard weightof banana-flavored marshmallows is too high, production will be shut down and inspected.Ms. Finkel and her staff have designed the production process so that only 8% of all16-ounce boxes of Go Bananas! fail to meet the standard weight of banana-flavored marsh-mallows. After much debate, GGG management has decided to shut down production ofGo Bananas! if at least five boxes in a weekly sample fail to meet the standard weight ofbanana-flavored marshmallows. Managerial ReportPrepare a managerial report that addresses the following issues.1. Calculate the probability that a weekly sample will result in a shutdown of productionif the production process is working properly. Comment on GGG management's policyfor deciding when to shut down production of Go Bananas!.2. GGG management wants to shut down production of Go Bananas! no more than 1% of thetime when the production process is working properly. Suggest the appropriate number ofboxes in the weekly sample that must fail to meet the standard weight of banana-flavoredmarshmallows in order for production to be shut down if this goal is to be achieved.3. Ms. Finkel has suggested that if given sufficient resources, she could redesign the pro-duction process to reduce the percentage of 16-ounce boxes of Go Bananas! that fail tomeet the standard weight of banana-flavored marshmallows when the process is work-ing properly. To what level must Ms. Finkel reduce the percentage of 16-ounce boxesof Go Bananas! that fail to meet the standard weight of banana-flavored marshmallowswhen the process is working properly in order for her to reduce the probability at leastfive of the sampled boxes fail to meet the standard to .01 or less?

Name: CASE PROBLEM1: GO BANANAS! BREAKFASTCEREALGreat Grasslands Grains, In
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: CASE PROBLEM1: GO BANANAS! BREAKFASTCEREALGreat Grasslands Grains, Inc. (GGG) manufactures and sells a wide variety of breakfastcereals. GGG's product development lab recently created a new cereal that consists of riceflakes and banana-flavored mars