TABLE 10-7 A Buyer for a Manufacturing Plant Suspects That His Primary

question 102

True/False

TABLE 10-7
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 identical 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.
-True or False: Referring to Table 10-7,the null hypothesis should be rejected.

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Definitions:

Minimum Required Rate Of Return

The lowest return that investors or managers expect to receive on an investment to make it worthwhile.

Operating Expenses

Ongoing expenses related to the operation of a business, excluding the costs of goods sold.

Average Operating Assets

The average value of the assets used by a business in its operational activities over a period of time, used to measure efficiency and profitability.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.