Alpha Corporation Receives a Shipment of Flour Every Morning from Their

Multiple Choice

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
60 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) 0.12264
B) 0.01504
C) 0.00792
D) 0.08898
E) 0.1234