Instruction 10-6
a Buyer for a Manufacturing Plant Suspects That

question 63

True/False

Instruction 10-6
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.
$$\begin{array} { c c c r } \text { Material } & \begin{array} { c } \text { Primary } \\\text { Supplier }\end{array} & \begin{array} { c } \text { Secondary } \\\text { Supplier }\end{array} & \text { Difference } \\\hline 1& \$ 55 & \$ 45 & \$ 10 \\2 & \$ 48 & \$ 47 & \$ 1 \\3 & \$ 31 & \$ 32 & - \$ 1 \\4 & \$ 83 & \$ 77 & \$ 6 \\5 & \$ 37 & \$ 37 & \$ 0 \\6& \$ 55 & \$ 54 & \$ 1 \\\hline \hline \text { Sum: } &\$309&\$292&\$17\\\text { Sum of Squares. } & \$ 17,573 & \$ 15,472 & \$ 139\end{array}$$
-Referring to Instruction 10-6,the null hypothesis should be rejected.

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Definitions:

Anecdotal Record

A narrative account of a specific incident or event concerning an individual's behavior, often used in educational or psychological contexts to gather qualitative data.

Personnel File

A collection of records kept by an employer that contains information related to an employee’s personal and employment history.

Biographical Data Inventory

A type of assessment tool that uses details from a person's life history to predict behavior and performance.

Late To Work

Circumstances or incidences where an employee arrives after the scheduled time to begin work, which can affect performance evaluations and job security.