TABLE 10-8
a Buyer for a Manufacturing Plant Suspects

question 99

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, if the buyer had decided to perform a two-tailed test, the p-value would have been between _____and____ .

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Definitions:

Neural Pathways

Networks of neurons in the brain that work together to enable communication between different areas of the brain and the nervous system.

Transduction

The conversion of one form of energy into another, as in the conversion of stimuli into neural signals by the sensory organs.

Photoreception

The process by which organisms detect light, enabling vision and various biological responses to light.

Perception

The process by which individuals interpret and organize sensory information to understand their environment.