$$\text { TABLE 10-8 }$$ A Buyer for a Manufacturing Plant Suspects That His Primary

question 34

Multiple Choice

$$\text { TABLE 10-8 }$$ 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.
$\begin{array}{crrr}&\text { Primary }&\text {Secondary }\\\underline{\text {Material}}&\underline{\text { Supplier}}&\underline{\text { Supplier }}&\underline{\text {Difference }}\\1 & \$ 55 & \$ 45 & \$ 10 \\2 & \$ 48 & \$ 47 & \$ 1 \\3 & \$ 31 & \$ 32 & -\$ 1 \\4 & \$ 83 & \$ 77 & \$ 6 \\5 & \$ 37 & \$ 37 & \$ 0 \\6 & \$ 55 & \$ 54 & \$ 1 \\\hline \text { Sum: } & \$ 309 & \$ 292 & \$ 17\end{array}$

$\text { Sum of Squares: } \$ 17,573 \$ 15,472 \quad \$ 139$
-Referring to Table 10-8, the buyer should decide that the primary supplier is

• A) overcharging because there is insufficient evidence to prove otherwise.
• B) overcharging because there is strong evidence that this is the case.
• C) not overcharging because there is insufficient evidence to prove otherwise.
• D) not overcharging because there is strong evidence to prove otherwise.

Describe personality traits typical of collectivist versus individualist societies.

Define personality and its uniqueness in individuals.

Relate the level of social network use to aspects of personality.

Acknowledge historical biases in research on personality theory.

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Definitions:

Marginal Cost

The amount of money needed to manufacture an extra unit of a good or service.

Diagram

A simplified drawing or plan that represents the essential features of something, often used for explanation or clarification.

Coase Theorem

A principle that asserts if trade in an externality is possible and there are no transaction costs, parties can negotiate to solve the problem privately.

Spillover Costs

Costs of production that affect people who have no control over or involvement in the production process, also known as externalities.