Instruction 10-5
a Buyer for a Manufacturing Plant Suspects That

question 159

Multiple Choice

Instruction 10-5
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 similar various 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.
$\begin{array}{llll}\text {Material}&\text {Primary Supplier}&\text {Secondary}&\text {Difference}\\&&\text { Supplier }\\ 1 & \$ 55 & \$ 45 & \$ 10 \\2 & \$ 48 & \$ 47 & \$ 1 \\3 & \$ 31 & \$ 32 & -\$ 1 \\4 & \$ 83 & \$ 77 & \$ 6 \\5 & \$ 37 & \$ 37 & \$ 0 \\6 & \$ 55 & \$ 54 & \$ 1 \\\hline \text { Sum: } & \$ 309 & \$ 292 & \$ 17 \\\text { Sum of Squares: } & \$ 17,573 & \$ 15,472 & \$ 139\end{array}$

-Referring to Instruction 10-5,the buyer should decide that the primary supplier is

• A) not overcharging because there is strong evidence to prove otherwise.
• B) not overcharging because there is insufficient evidence to prove otherwise.
• C) overcharging because there is strong evidence that this is the case.
• D) overcharging because there is insufficient evidence to prove otherwise.

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Definitions:

Emergency Preparedness

The act of creating strategies to avoid, react to, and recuperate from crises.

Patients

Individuals receiving medical treatment or care.

E-Prescribing

The digital generation, transmission, and filling of a medical prescription, bypassing the need for handwritten paper prescriptions.

Medication Management

The oversight and coordination of a patient’s medications to ensure they are used safely and effectively.