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?

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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:

  1. null and alternative hypothesis in words
  2. level of significance and critical value/s and region (graph it please)
  3. compute the test statistic
  4. decision
  5. state the conclusion
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