A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging. In order to determine if his suspicion is correct, 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 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. Based on the above scenario and appropriate SPSS output,

a) determine the mean difference, (A).

b) calculate the standard error mean of secondary, (B).

c) determine the t value, (C).

d) state the appropriate null and alternative hypothesis.

e) at the 0.01 level of significance, perform a hypothesis testing to prove the above statement.

Output 5 Group Statistics Supplier Mean N Std Std. Error Deviation Mean Primary 38.00 Price 6.557 3.786 Secondary 59.33 15.695 B Levene's Test t-test for Equality of Means for Equality of Variances F Sig. t df Sig. (2- Mean Std. Error tailed) Difference Difference Equal 3.122 0.152 C 4 096 A 9.821 variances assumed Price Equal -2.172 2.678 .129 -21.333 9.821 variances not assumedOutput 7 Paired Samples Statistics Mean N Std. Std. Error Deviation Mean Pair 1 Primary 51.50 18.218 7.438 Secondary 48.67 6 15.883 B Paired Samples Test Paired Differences df Sig. (2- Mean Std. Std 99% tailed) Difference Deviation Error Confidence Mean Interval of the Difference Lower Upper Pair Primary - Secondary 4.262 1.740 -4.183 9.849 C 5 .164 Output 8 Correlations SIO CL Time spend alone Pearson Correlation 733 in house Sig. (2-tailed) .000 E A N 41 41 Anxiety score Pearson Correlation 733 Sig. (2-tailed) 000 N 41 41 Correlation is significant at the 0.01 level (2-tailed)