TABLE 10-7 A Buyer for a Manufacturing Plant Suspects That His Primary

question 285

Multiple Choice

TABLE 10-7
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. The data collected is presented in the table below, with some summary statistics presented (all of these might not be necessary to answer the questions which follow) . The buyer believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01.
-Referring to Table 10-7, the test to perform is a

• A) pooled-variance t test for differences between two means.
• B) one-way ANOVA F test for differences among more than two means.
• C) Z test for the difference between two proportions.
• D) paired t test for the mean difference.

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Definitions:

Good X

A placeholder term for any product or service in economic analysis.

Technology Used

Refers to the tools, equipment, and techniques applied in the production of goods and services, influencing efficiency and productivity.

Harvest Coconuts

The process of gathering coconuts from coconut palms, which can involve climbing the trees or using long tools to reach the fruits.

Movement

The change in position or location, often used in economics to describe changes on graphs such as shifts in demand or supply curves.