Use the Following to Answer the Questions Below

question 27

Multiple Choice

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

-Refer to the instruction above.What are the total annual costs if Acme is the supplier selected?

• A)$4,010,450
• B)$113,550
• C)$4,001,050
• D)$4,011,550

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Definitions:

Increase The Sample

An action to add more subjects or observations to the sample being studied to improve the representativeness or reduce the margin of error.

Obtained T Value

The achieved result of a t-test calculation, indicating the difference between groups measured in units of standard error.

Critical Value

The threshold value that a test statistic must exceed in order for the null hypothesis to be rejected in statistical hypothesis testing.

Null Hypothesis

A statement used in statistics that proposes there is no significant effect or difference present between specified populations or factors.