TABLE 10-8 A Buyer for a Manufacturing Plant Suspects That His Primary

question 87

Multiple Choice

TABLE 10-8
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.

-Referring to Table 10-8, the test to perform is a

• A) pooled-variance t test for differences between two means.
• B) separate-variance t test for differences between two means.
• C) Z test for the difference between two proportions.
• D) paired t-test for the mean difference.

---

Definitions:

Work In A Dark Area

Conducting tasks or operations in a location with low light levels, which may necessitate the use of additional lighting equipment for visibility.

Due Date

The specific day by which a task, obligation, or payment is expected to be completed or fulfilled.

Gross Collection Ratio

Includes the total payments received by a practice for a specific period of time, not including any write-offs. The gross collection ratio can be calculated by taking the total payments for the specific period divided by the total charges, again without considering write-offs.

Percentage

A portion of a whole expressed as a fraction of 100, used to describe proportions or compare quantities.