THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 29

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A trap and skeet shooting club,purchases clay pigeons.These are quite fragile and often break in the box during shipment without any outward sign of damage.Even as the clay pigeons are loaded into the throwing machine,broken or cracked clay pigeons may not be noticed.Each clay pigeon broken is a net loss to the club so the club is anxious to purchase from suppliers who have a record of little or no breakage in shipping and handling.Two suppliers of clay pigeons are contacted and asked for price quotes.Supplier 1 quotes a higher price than Supplier 2 but says that the higher price is the result of better,more expensive packaging and thus results in more usable clay pigeons per case.The shooting club manager decides to purchase 10 cases from each supplier.Each case has 250 clay pigeons.Careful records are maintained on each case as to the number of good clay pigeons.The records after the cases were used are as follows:
Number of good clay pigeons

-Using results of Excel or Minitab to conduct a two-sample t-test,test
H₀ : μ₁ - μ₂ ≤ 0 vs.H₁ : μ₁ - μ₂ > 0 at the 5% significance level.

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Definitions:

Buy Warrants

Options that give the holder the right to purchase a company's stock at a specified price before a certain date.

Employee Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Fixed Price

A pricing strategy where the cost of goods or services is set at a specific amount and does not fluctuate.

Buy Shares

The act of purchasing ownership interests in a company, thereby becoming a shareholder entitled to dividends and capital gains.