Question
A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion iscorrect, he
A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion iscorrect, he contacts a second supplier and asks for the prices on various identical materials. He wants to compare these prices with those of his primary supplier. The data collected is presented in the accompanyingtable, with some summary statistics presented(all of these might not be necessary to answer thequestion). 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. What should the buyerdecide?
A.
The primary supplier is not overcharging because there is strong evidence to prove otherwise.
B.
The primary supplier is overcharging because there is insufficient evidence to prove otherwise.
C.
The primary supplier is not overcharging because there is insufficient evidence to prove otherwise.
D.
The primary supplier is overcharging because there is strong evidence that this is the case.
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