TABLE 10-8
a Buyer for a Manufacturing Plant Suspects That

question 180

Short Answer

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

$\begin{array}{lll} & \text { Primary } & \text { Secondary } \\ \text { Material } & \underline{\text { Supplier }} &\underline{\text { Supplier } }&\underline{\text { Difference }}\\1 & \$ 55 & \$ 45 & \$ 10 \\ 2 & \$ 48 & \$ 47 & \$ 1 \\ 3 & \$ 31 & \$ 32 & -\$ 1 \\ 4 & \$ 83 & \$ 77 & \$ 6 \\ 5 & \$ 37 & \$ 37 & \$ 0 \\ 6 & \$ 55 & \$ 54 & \$ 1\\\hline \text { Sum: } & \$ 309 & \$ 292 & \$ 17 \\ \text { Sum of Squares: } &\$ 17,573 & \$ 15,472 & \$ 139\end{array}$



-Referring to Table 10-3, what is the value of the test statistic for testing if the population variances differ for preservatives I and II?

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Definitions:

Child Abuse

The physical, sexual, emotional mistreatment, or neglect of a child by a parent, guardian, or other responsible person.

Neglect

Refers to the failure to provide adequate care, support, or attention to someone's needs, often resulting in harm or risk of harm.

Drug Addicts

individuals who are dependent on drugs, where such usage negatively affects their physical and mental health, and social relationships.

Alcoholics

individuals who suffer from alcoholism, characterized by a physical or psychological dependency on alcoholic substances.