TABLE 10-8
a Buyer for a Manufacturing Plant Suspects

question 136

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




-Referring to Table 10-8, the decision rule is to reject the null hypothesis if _______.

Comprehend how remanufacturing contributes to profitability and sustainability in supply chains.

Recognize how companies implement sustainable practices in packaging, energy consumption, and overall supply chain management.

Analyze the principles surrounding the polluter pays and their implications on sustainability practices.

Identify the types of inventory that significantly impact sustainability.

---

Definitions:

CSR Stories

Narratives or accounts relating to Corporate Social Responsibility, showcasing how companies engage in activities that positively impact society and the environment.

National Broadcast Media

Media outlets such as television and radio networks that distribute content across an entire nation.

Perceived Validity

The extent to which information is deemed credible or believable by its audience, often influenced by the source's trustworthiness and evidence presented.

Fake News

Refers to false or misleading information presented as news, often with the intent of deceiving the audience or influencing public opinion.