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

question 34

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. Apply a decision rule using the observed level of significance and draw a conclusion.

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Definitions:

Actual Reserves

The sum of money a bank holds in its vault or with the central bank, ready to satisfy withdrawal requests or comply with regulatory obligations.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by monetary authorities.

Excess Reserves

The reserves that banks hold over and above the legally mandated minimum to meet withdrawal demands.

Federal Reserve Open Market Committee

The branch of the Federal Reserve System responsible for influencing money supply and credit conditions through the trading of government securities.