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:

Trade Settlement

The process of transferring securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Required Return

The minimum expected return on an investment necessary for an investor to consider making that investment, considering its risk.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, commonly measured by the Consumer Price Index (CPI).

Counterparty

The other organization or party involved in a financial transaction.