2. A firm is considering the delivery times of two raw material suppliers, A and B....

2. A firm is considering the delivery times of two raw material suppliers, A and B. The firm is basically satisfied with supplier A; however, if the firm finds the mean delivery time of supplier B is less than the mean delivery time of supplier A, the firm will begin purchasing raw materials from supplier B (meaning, switch from supplier A to supplier B). Independent samples (assume equal population variances) show the following sample data for the delivery times of the two suppliers:

	SUPPLIER
SUMMARY DATA	A	B
Sample Mean	15 days	12 days
Sample Standard Deviation	5 days	4 days
Sample Size	61	41

a. State the null and alternative hypotheses for this situation.
b. Describe what a Type I Error would be in this situation (please be as specific as possible).
c. If α = 0.01, what is the critical value of the associated test statistic?
d. What is the calculated value of the associated test statistic?
e. State your decision about the null hypothesis by comparing the critical and calculated values of the test statistic (Parts c and d).
f. What action do you recommend in terms of supplier selection?

Expert Solution

milcah answered 6 months ago

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