A buyer for a manufacturing plant suspects that his primary supplier of raw mate
ID: 384977 • Letter: A
Question
A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion is correct, he contacts a second supplier and asks for the prices on various materials. He wants to compare these prices with those of his primary supplier. The data collected is presented in the table below, with some summary statistics presented (all of these might not be necessary to answer the questions which follow). The buyer believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01. Material Primary Supplier Secondary Supplier Difference 1 $55 $45 $10 2 $48 $47 $1 3 $31 $32 -$1 4 $83 $77 $6 5 $37 $37 $0 6 $55 $54 $1 Sum: $309 $292 $17 Sum of Squares: $17,573 $15,472 $139 Referring to the table, the test to perform is a a. pooled-variance t test for differences in 2 means. b. separate-variance t test for differences in 2 means. c. Wilcoxon Rank Sum Test for differences in 2 medians. d. t-test for mean difference. A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion is correct, he contacts a second supplier and asks for the prices on various materials. He wants to compare these prices with those of his primary supplier. The data collected is presented in the table below, with some summary statistics presented (all of these might not be necessary to answer the questions which follow). The buyer believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01. Material Primary Supplier Secondary Supplier Difference 1 $55 $45 $10 2 $48 $47 $1 3 $31 $32 -$1 4 $83 $77 $6 5 $37 $37 $0 6 $55 $54 $1 Sum: $309 $292 $17 Sum of Squares: $17,573 $15,472 $139 Referring to the table, the test to perform is a a. pooled-variance t test for differences in 2 means. b. separate-variance t test for differences in 2 means. c. Wilcoxon Rank Sum Test for differences in 2 medians. d. t-test for mean difference. A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion is correct, he contacts a second supplier and asks for the prices on various materials. He wants to compare these prices with those of his primary supplier. The data collected is presented in the table below, with some summary statistics presented (all of these might not be necessary to answer the questions which follow). The buyer believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01. Material Primary Supplier Secondary Supplier Difference 1 $55 $45 $10 2 $48 $47 $1 3 $31 $32 -$1 4 $83 $77 $6 5 $37 $37 $0 6 $55 $54 $1 Sum: $309 $292 $17 Sum of Squares: $17,573 $15,472 $139 Referring to the table, the test to perform is a a. pooled-variance t test for differences in 2 means. b. separate-variance t test for differences in 2 means. c. Wilcoxon Rank Sum Test for differences in 2 medians. d. t-test for mean difference.Explanation / Answer
The buyer is comparing the prices for same material between two suppliers, thus the samples are dependent samples. The buyers null hypothesis is that there is zero difference between the mean prices of samples. Thus, best testing method is paired t-test for mean differences.
ANS: d. t-test for mean difference
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