A Company Provides Portable Walkie-Talkies to Construction Crews

question 27

Essay

A company provides portable walkie-talkies to construction crews. Their batteries last, on average, 55 hours of continuous use. The purchasing manager receives a brochure advertising a new brand of batteries with a lower price, but suspects that the lifetime of the batteries may be shorter than the brand currently in use. To test this, the new brand is installed in 8 randomly selected radios. Here are the results for the lifetime of the batteries (in hours): 45 52 56 55 51 57 48 52 Is there sufficient evidence to conclude that the purchasing manager is correct in his conjecture that the new brand has a shorter average lifetime?

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Definitions:

Price Sensitive

The degree to which the demand for a product changes in response to changes in its price.

Differential Pricing

A pricing strategy in which a company sets different prices for the same product or service based on certain criteria such as customer segment, quantity purchased, or location.

Wasted Capacity

Resources or production capabilities that are underutilized or not used to their full potential, leading to inefficiencies.

Overbooking

A strategy used in various industries where more reservations or orders are accepted than can be accommodated, based on expected cancellations or no-shows.