Apple Company would like to make sure that they will produce the needed number o

Question

Apple Company would like to make sure that they will produce the needed number of laptops for the Singapore IT Week next month. They need to purchase 225 hard drives from 2 suppliers which have the acceptable specifications for their mac pro. Supplier 1 can produce 200 units of hard drives per day with a standard deviation of 20 units per day. Supplier 2 can produce 250 units of hard drives per day with a standard deviation of 40 units per day. Which supplier can provide, on the average, fewer number of rejected units?

Explanation / Answer

We need to find z scores for both.

Simply put, a z-score is the number of standard deviations from the mean a data point is. But more technically it's a measure of how many standard deviations below or above the population mean a raw score is. A z-score is also known as a standard score and it can be placed on a normal distribution curve.

z1 = (200 - 225)/20 = - 1.25

z2 = (250 - 225)/40 = 0.625

Abosulute value of z1 > z2

So, Supplier 2 is better to be chosen

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