A Buyer for a Manufacturing Plant Suspects That His Primary

question 18

Multiple Choice

A buyer for a manufacturing plant suspects that his primary supplier of raw materials is
Overcharging.In order to determine if his suspicion is correct, he contacts a second supplier and
Asks for the prices on various identical materials.He wants to compare these prices with those of
His primary supplier.He collected data on 6 different materials from both suppliers.He believes
That the differences are normally distributed.Which of the following tests will be the most
Appropriate?

• A) Pooled-variance t test.
• B) Paired t test.
• C) Wilcoxon rank sum test.
• D) Kruskal-Wallis rank Test.

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Definitions:

Consumer Surplus

Consumer surplus represents the discrepancy between what consumers are prepared and capable of spending for a product or service and the actual amount they end up paying.

Artificially Scarce Goods

Products or services whose availability is limited by the seller to increase demand or price, rather than by natural scarcity.

Natural Monopolists

Entities that dominate a market due to inherent advantages, such as economies of scale, which prevent efficient competition.

Average Total Costs

The total of all costs associated with production divided by the number of units produced, giving the cost per unit.