A PC Company Uses Two Suppliers for Rechargeable Batteries for Its

question 24

Essay

A PC company uses two suppliers for rechargeable batteries for its notebook computers.Two factors are important quality features of the batteries: mean use time and variation.It is desirable that the mean use time be high and the variability be low.Recently,the PC maker conducted a test on batteries from the two suppliers.In the test,9 randomly selected batteries from Supplier 1 were tested and 12 randomly selected batteries from Supplier 2 were tested.The following results were observed:
Supplier 1 Supplier 2
n₁ = 9 n₂ = 12 ₁ = 67.25 min. ₂ = 72.4 min.
S₁= 11.2 min S₂ = 9.9 min
Based on these sample results,can the PC maker conclude that a difference exists between the two batteries with respect to the population mean use time? Test using a 0.10 level of significance.

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Definitions:

Periodic Inventory System

An inventory system where inventory levels and cost of goods sold (COGS) are updated in the accounting records at the end of an accounting period.

Cost of Goods Sold

The total cost directly related to the production of the goods sold by a company.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period.

Perpetual Inventory System

An inventory management method that continuously updates the count and value of inventory, reflecting additions and subtractions in real-time.