As purchasing agent for the Horner-Williams Company, you have primary responsibility for securing high-quality raw materials at
Question:
As purchasing agent for the Horner-Williams Company, you have primary responsibility for securing high-quality raw materials at the best possible price. One particular material that the Horner-Williams Company uses a great deal of is aluminum. After careful study, you have been able to reduce the prospective vendors to two. It is unclear whether these two vendors produce aluminum that is equally durable.
To compare durability, the recommended procedure is to put pressure on the aluminum until it cracks. The vendor whose aluminum requires the greatest average pressure will be judged to be the one that provides the most durable product.
To carry out this test, 14 pieces from vendor 1 and 14 pieces from vendor 2 are selected at random. The following results in pounds per square inch (psi) were noted:
a. Based on the sample data, what would you tell him if you tested at the significance level of 0.10?
b. Would your conclusion differ if you tested at the significance level of 0.02? Discuss.
Step by Step Answer:
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry