Question

6) Two Suppliers produce the exact component for a particular Customer. Random samples were drawn from the last lot sent in by each Supplier to see if they had any significant difference. Supplier “A” had a mean of 1.607” with a standard deviation of .0020 from a sample of 10 parts. Supplier “B” had a mean of 1.606” with a standard deviation equal to .0018 from a sample of 10 parts. The Customer target value is 1.606”. Supplier “B” charges $3.00 per part more than Supplier “A”. Which recommendation below would you make to your boss? Use a 95% confidence level. (HINT: Use t-test for between two independent populations. First do F-Test to see if you need to use 2 Sample T-Test Assuming Equal Variances or 2 Sample T-Test Assuming Unequal Variances). Show all work or use Minitab/Excel. No work no credit.

A) Go with Supplier “B” only since B hit target on nose with smaller variation.

B) Go with either Supplier “A” or “B” since we could not reject the null hypothesis and conclude no significant difference between the two Suppliers.

C) Go with Supplier “A” as the primary Supplier and use “B” as a backup since we could not reject the null hypothesis and conclude no significant difference between the two Suppliers. Since they are not significantly different, we can save money going with Supplier “A”.

D) Get out of both Suppliers since neither are meeting the Customer requirement.

Answer 1