Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Benson Manufacturing is considering ordering suppliers. The suppliers may differ

ID: 3227607 • Letter: B

Question

Benson Manufacturing is considering ordering suppliers. The suppliers may differ terms of quality in that the proportion or percentage of defective components may differ among the suppliers. To evaluate the proportion of defective components for the suppliers, Benson has requested a sample shipment of 500 components from each suppliers. The number of defective components and the number of good components found in each shipment are as follows. Formulate the hypotheses that can be used to test for equal proportions of defective components provided by the three suppliers. Using a .05 level of significance, conduct the hypothesis test. What is the p-value what is your conclusion? Conduct a multiple comparison test to determine if is an overall best supplier if one supplier can be eliminated because of poor quality.

Explanation / Answer

Answer:

Ho: P1=P2=P3

H1: At least one pair of proportions are different.

Chi-Square Test

Observed Frequencies

Column variable

Calculations

Row variable

A

B

C

Total

fo-fe

Defective

15

20

40

75

-10

-5

15

Good

485

480

460

1425

10

5

-15

Total

500

500

500

1500

Expected Frequencies

Column variable

Row variable

A

B

C

Total

(fo-fe)^2/fe

Defective

25

25

25

75

4.0000

1.0000

9.0000

Good

475

475

475

1425

0.2105

0.0526

0.4737

Total

500

500

500

1500

Data

Level of Significance

0.05

Number of Rows

2

Number of Columns

3

Degrees of Freedom

2

Results

Critical Value

5.991

Chi-Square Test Statistic

14.73684

p-Value

0.000631

Reject the null hypothesis

Calculated chi square = 14.7368, P=0.00063 which is < 0.05 level.

Ho is rejected. We conclude that defective proportions are different.

Marascuilo Procedure

Level of Significance

0.05

Square Root of Critical Value

2.447746831

Sample Proportions

Group 1

0.03

Group 2

0.04

Group 3

0.08

MARASCUILO TABLE

Proportions

Absolute Differences

Critical Range

| Group 1 - Group 2 |

0.01

0.028440248

Not significant

| Group 1 - Group 3 |

0.05

0.035080576

Significant

| Group 2 - Group 3 |

0.04

0.03663452

Significant

Multiple comparison tests show that supplier C is different from suppliers A and B.

By comparing the proportion of defects, supplier A is best supplier and C is of poor quality.

Chi-Square Test

Observed Frequencies

Column variable

Calculations

Row variable

A

B

C

Total

fo-fe

Defective

15

20

40

75

-10

-5

15

Good

485

480

460

1425

10

5

-15

Total

500

500

500

1500

Expected Frequencies

Column variable

Row variable

A

B

C

Total

(fo-fe)^2/fe

Defective

25

25

25

75

4.0000

1.0000

9.0000

Good

475

475

475

1425

0.2105

0.0526

0.4737

Total

500

500

500

1500

Data

Level of Significance

0.05

Number of Rows

2

Number of Columns

3

Degrees of Freedom

2

Results

Critical Value

5.991

Chi-Square Test Statistic

14.73684

p-Value

0.000631

Reject the null hypothesis

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote