SCENARIO 11-10-A
You Are the Quality Control Manager of a Water

question 141

True/False

SCENARIO 11-10-A
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. You have started looking for
alternative replacement for the existing connector design. Three different vendors have proposed
different designs and provided data they have collected on their designs that have been subjected to a
durability test. The data on the number of times the connectors designed by them have been used to
lift the bottles before they break from random samples of 30 bottles are shown below and also
contained in the file Scenario11-10-DataA.XLSX. $$\begin{array} { l l l l l l l l l l l } \text { Vendor A } & 1498 & 1667 & 1530 & 1458 & 1315 & 1458 & 1411 & 1348 & 1583 & 1565 \\& 1495 & 1533 & 1473 & 1654 & 1499 & 1349 & 1486 & 1739 & 1820 & 1543 \\& 1440 & 1652 & 1610 & 1660 & 1563 & 1507 & 1450 & 1501 & 1515 & 1501 \\\text { Vendor B } & 2027 & 2007 & 1977 & 1787 & 2046 & 1945 & 1898 & 2130 & 2096 & 1876 \\& 2014 & 1815 & 1982 & 2004 & 1918 & 1904 & 2061 & 1986 & 1952 & 2061 \\& 2038 & 2227 & 2030 & 2079 & 1884 & 2045 & 2009 & 1970 & 1946 & 2011 \\\text { Vendor C } & 2784 & 3151 & 3126 & 2875 & 2881 & 3000 & 2872 & 3097 & 3020 & 3077 \\& 3082 & 2931 & 2922 & 2877 & 2905 & 3079 & 2916 & 2917 & 3110 & 3121 \\& 3084 & 3065 & 2974 & 2900 & 2860 & 2989 & 2978 & 2881 & 3095 & 2893\end{array}$$ Assume that and the number of times the connectors have been used to lift the bottles before they
break follows a normal distribution. You want to test to see if there is enough evidence of a difference
in mean number of times the connectors have been used to lift the bottles before they break across the
three vendors.
-Referring to Scenario 11-10-A, if a level of significance of 0.05 is chosen for the
test to determine whether there is enough evidence of a difference in mean number of times the
connectors have been used to lift the bottles before they break across the three vendors, the
conclusion indicates that all 3 designs have different means.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in cash.

Equipment Sold

The process of disposing or selling business equipment, recorded as a transaction that may impact a company’s financial statements.

Prepaid Expense

An expense that has been paid in advance and is recorded as an asset until it is actually incurred.