\f\f\f\f\ftilton between in state and out of state. loan defaults. Determine the probability of such an occurrence. Case 10.1 Larabee Engineering -Part 1 Cregg Hart is manufacturing manager for Larabee Engineer- ing, a locomotive engine and rail car manufacturer. The 100 rivets, and she pulled a random sample of 100 rivets from her company has been very successful in recent years, and in July inventory of rivets from the original supplier. She then asked an 2016 signed two major contracts totaling nearly $200 million. A intern to measure the diameters to three decimal places using a by to the company's success has been its focus on quality, Cus- micrometer. The resulting data from both suppliers are given in the file called Larabee. tomers from around the world have been very pleased with the mention to detail put forth by Larabee Engineering. Required Tasks: One of the things Cregg has been adamant about is that Lara- 1. Develop histograms showing the distribution of rivet bee Engineering's suppliers also provide high quality. As a result, diameters from the two suppliers. when the company finds good suppliers, it stays with them and 2. Compute the sample means and standard deviations for the tries to establish a long-term relationship. However, Cregg must two sets of data. also factor in the costs of parts and materials and has instructed 3. Comment on whether it appears the assumptions required for his purchasing staff to be on the lookout for "better deals." testing if the two populations have equal mean diameters are Recently, Sheryl Carleson, purchasing manager, identified a satisfied. new rivet supplier in Europe that claims its rivets are as good or 4. Select a level of significance for testing whether the two better quality than the current supplier's but at a much lower cost. suppliers have rivets with equal mean diameters. Discuss the One key quality factor is the rivet diameter. When Sheryl factors you used in arriving at the level of significance you Uproached Cregg about the possibility of going with the new sup- have selected. Plier for rivets, he suggested they conduct a test to determine if 5. Perform the appropriate null and alternative hypothesis test. there is any difference in the average diameter of the rivets from Discuss the results. the two companies. Sheryl requested that the new company send 6. Prepare a short report outlining your recommendation