Question: In conducting her annual review of suppliers a purchasing agent

In conducting her annual review of suppliers, a purchasing agent has collected data on a sample of orders from two of her company’s leading vendors. On average, the 24 shipments from company 1 have arrived 3.4 days after the order was placed, with a standard deviation of 0.4 days. The 30 shipments from company 2 arrived an average of 3.6 days after the order was placed, with a standard deviation of 0.7 days. The average time for shipments to be received is about the same, regardless of supplier, but the purchasing agent is concerned about company 2’s higher variability in shipping time. Using the 0.025 level of significance in a one-tail test, should the purchasing agent conclude that company 2’s higher standard deviation in shipping times is due to something other than chance?



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  • CreatedSeptember 08, 2015
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