firm is studying the delivery times of two raw material suppliers. The firm is basically satisfied with supplier A and is prepared to stay with that supplier. However, if the firm finds that the mean delivery time of supplier B is less than that of supplier A, it will begin making raw material purchases from supplier B. Assume that 50 independent samples from each supplier show the delivery time of supplier A to be 14 days with a standard deviation of 3 days, while the delivery time of B is shown to be 12.5 days with a standard deviation of 2 days. Testing at a 0.05 level of significance, should the firm switch to supplier B or not?
firm is studying the delivery times of two raw material suppliers. The firm is basically satisfied with supplier A and is prepared to stay with that supplier. However, if the firm finds that the mean delivery time of supplier B is less than that of supplier A, it will begin making raw material purchases from supplier B. Assume that 50 independent samples from each supplier show the delivery time of supplier A to be 14 days with a standard deviation of 3 days, while the delivery time of B is shown to be 12.5 days with a standard deviation of 2 days. Testing at a 0.05 level of significance, should the firm switch to supplier B or not?
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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A firm is studying the delivery times of two raw material suppliers. The firm is basically satisfied with supplier
A and is prepared to stay with that supplier. However, if the firm finds that the mean delivery time of supplier
B is less than that of supplier A, it will begin making raw material purchases from supplier B. Assume that 50
independent samples from each supplier show the delivery time of supplier A to be 14 days with a standard
deviation of 3 days, while the delivery time of B is shown to be 12.5 days with a standard deviation of 2 days.
Testing at a 0.05 level of significance, should the firm switch to supplier B or not?
Compute for:
- null and alternative hypothesis in words
- level of significance and critical value/s and region (graph it please)
- compute the test statistic
- decision
- state the conclusion
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