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CSSBB · Question #288

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belt's effort…

The correct answer is E. The Mean is greater than $ 4,200. See the full explanation below for the reasoning.

Analyze Phase

Question

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belt’s effort requiring that the average cost of an internal critical raw material component be less than or equal to $4,200 in order to stay within budget. Using a sample of 35 first article components, a Mean of the new product upgrade price of $4,060, and a Standard Deviation of $98 was estimated. The Alternative Hypothesis in the above example is?

Options

  • AThe Standard Deviation is equal to $300.
  • BThe Mean is less than $4,320.
  • CThe Mean is equal to $4,060.
  • DThe Mean is less than $4,200.
  • EThe Mean is greater than $ 4,200.

How the community answered

(51 responses)
  • A
    8% (4)
  • B
    2% (1)
  • C
    2% (1)
  • D
    4% (2)
  • E
    84% (43)

Topics

#alternative hypothesis#hypothesis testing#one-sample t-test#null hypothesis

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