Use the Data Given Below to Answer the Following Question(s)

question 37

Essay

Use the data given below to answer the following question(s).
The following extract from a manufacturer's database shows a sample of 10 suppliers, their transportation charges, and the estimated and actual total costs of supplying materials. (Note: Assume a significance level of 0.05 wherever necessary.) $$\begin{array} { | l | c | c | c | } \hline \text { Supp lier } & \begin{array} { c } \text { Transportation } \\\text { Charges }\end{array} & \begin{array} { c } \text { Estimated Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Actual Total } \\\text { Cost }\end{array} \\\hline \text { Peter } & 340 & 4,500 & 4,680 \\\hline \text { John } & 560 & 4,500 & 4,790 \\\hline \text { Martin } & 480 & 4,500 & 5,110 \\\hline \text { Philip } & 290 & 4,500 & 4,780 \\\hline \text { Mark } & 370 & 4,500 & 4,810 \\\hline \text { Thomas } & 520 & 4,500 & 4,770 \\\hline \text { Jaison } & 350 & 4,500 & 5,250 \\\hline \text { David } & 430 & 4,500 & 4,930 \\\hline \text { Carter } & 510 & 4,500 & 5,010 \\\hline \text { Leonard } & 270 & 4,500 & 4,810 \\\hline\end{array}$$
-Conduct the appropriate type of one-sample test-statistic to determine whether the average transportation charge is less than $430.

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Control Limits

Thresholds set in quality control processes beyond which a process is considered to be out of control.

Centerline

In statistical process control charts, it represents the mean or average value of the process measurements over time, serving as a benchmark for detecting variations.

Lower Control Limit

In quality control, the lower threshold below which a process is considered out of control and corrective action may be necessary.