The Eaton Company sells breakable china through a mail-order system that has been very profitable. One of
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In the past, the company has purchased two different packaging materials from two suppliers. The assumption was that there would be no difference in the proportion of damaged shipments resulting from use of either packaging material. The sales manager recently decided a study of this issue should be done. Therefore, a random sample of 300 orders using shipping material 1 and a random sample of 250 orders using material 2 were pulled from the files. The number of damaged parcels, x , was recorded for each material as follows:
a. Is the normal distribution a good approximation for the distribution of the difference between the sample proportions? Provide support for your answer.
b. Based on the sample information and a = 0.03, what should the Eaton Company conclude?
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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