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Question: Refer to the Journal of Business Logistics (Vol. 36, 2015) study of the factors that lead to successful performance-based logistics projects, Exercise 2.45 (p. 95). Recall that the opinions of a sample of Department of Defense (DOD) employees and suppliers were solicited during interviews. Data on years of experience for the 6 commercial suppliers interviewed and the 11 government employees interviewed are listed in the accompanying table. Assume these samples were randomly and independently selected from the populations of DOD employees and commercial suppliers. Consider the following claim: 鈥淥n average, commercial suppliers of the DOD have less experience than government employees.鈥

a. Give the null and alternative hypotheses for testing the claim.

b. An XLSTAT printout giving the test results is shown at the bottom of the page. Find and interpret the p-value of the test user.

c. What assumptions about the data are required for the inference, part b, to be valid? Check these assumptions graphically using the data in the PBL file.

Short Answer

Expert verified

Answer

The total procedure of controlling how resources are bought, maintained, as well as delivered to their eventual location is referred to as logistics

Step by step solution

01

(a) State the null and alternate hypothesis 

Let 1be the mean years of experience for commercial suppliers and 2be the mean years of experience for government employees.

The hypothesis that the company would like to test will be:

Null hypothesis: H0:1=2. That is, the mean years of experience for commercial suppliers is not less than the mean years of experience for government employees.

Alternate hypothesis: H0:1<2. That is, the mean years of experience for commercial suppliers are less than the mean years of experience for government employees.

02

(b) Interpret the p-value 

It is given that,

The level of significance 5% is0.05 .

n1=6,n2=11x1=12.33,x2=20.82Z=x1-x2-1-212n+22n=12.33-20.82-08.1026+8.93211=-8.494.26=-1.993

So, the p-value is .046.

As the p-value is less than the significance level, so the null hypothesis will be rejected. Therefore, it can be concluded that the mean years of experience for commercial suppliers is less than the mean years of experience for government employees.

03

(c) State the assumptions

The assumptions are:

  • Each sample is taken from simple random sampling.
  • Each sample is independent.
  • Each sample size is small.
  • Each sample is approximately normally distributed.
  • The population variance of the two samples is equal.

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Most popular questions from this chapter

Question: Consumers鈥 attitudes toward advertising. The two most common marketing tools used for product advertising are ads on television and ads in a print magazine. Consumers鈥 attitudes toward television and magazine advertising were investigated in the Journal of Advertising (Vol. 42, 2013). In one experiment, each in a sample of 159 college students were asked to rate both the television and the magazine marketing tool on a scale of 1 to 7 points according to whether the tool was a good example of advertising, a typical form of advertising, and a representative form of advertising. Summary statistics for these 鈥渢ypicality鈥 scores are provided in the following table. One objective is to compare the mean ratings of TV and magazine advertisements.

a. The researchers analysed the data using a paired samples t-test. Explain why this is the most valid method of analysis. Give the null and alternative hypotheses for the test.

b. The researchers reported a paired t-value of 6.96 with an associated p-value of .001 and stated that the 鈥渕ean difference between television and magazine advertising was statistically significant.鈥 Explain what this means in the context of the hypothesis test.

c. To assess whether the result is 鈥減ractically significant,鈥 we require a confidence interval for the mean difference. Although this interval was not reported in the article, you can compute it using the information provided in the table. Find a 95% confidence interval for the mean difference and interpret the result. What is your opinion regarding whether the two means are 鈥減ractically significant.鈥

Source: H. S. Jin and R. J. Lutz, 鈥淭he Typicality and Accessibility of Consumer Attitudes Toward Television Advertising: Implications for the Measurement of Attitudes Toward Advertising in General,鈥 Journal of Advertising, Vol. 42, No. 4, 2013 (from Table 1)

The 鈥渓ast name鈥 effect in purchasing. The Journal of Consumer Research (August 2011) published a study demonstrating the 鈥渓ast name鈥 effect鈥攊.e., the tendency for consumers with last names that begin with a later letter of the alphabet to purchase an item before consumers with last names that begin with earlier letters. To facilitate the analysis, the researchers assigned a number, x, to each consumer based on the first letter of the consumer鈥檚 last name. For example, last names beginning with 鈥淎鈥 were assigned x = 1; last names beginning with 鈥淏鈥 were assigned x = 2; and last names beginning with 鈥淶鈥 were assigned x = 26.

a. If the first letters of consumers鈥 last names are equally likely, find the probability distribution for x.

b. Find E (x) using the probability distribution, part a. If possible, give a practical interpretation of this value.?

c. Do you believe the probability distribution, part a, is realistic? Explain. How might you go about estimating the true probability distribution for x

Question: Independent random samples selected from two normal populations produced the sample means and standard deviations shown below.

Sample 1

Sample 2

n1= 17x1= 5.4s1= 3.4

role="math" localid="1660287338175" n2= 12x2=7.9s2=4.8

a. Conduct the testH0:(1-2)>10against Ha:(1-2)10. Interpret the results.

b. Estimate1-2 using a 95% confidence interval

To compare the means of two populations, independent random samples of 400 observations are selected from each population, with the following results:

Sample 1

Sample 2

x1=5,2751=150

x2=5,2402=200

a. Use a 95%confidence interval to estimate the difference between the population means (12). Interpret the confidence interval.

b. Test the null hypothesis H0:(12)=0versus the alternative hypothesis Ha:(12)0 . Give the significance level of the test and interpret the result.

c. Suppose the test in part b was conducted with the alternative hypothesis Ha:(12)0 . How would your answer to part b change?

d. Test the null hypothesis H0:(12)=25 versus Ha:(12)25. Give the significance level and interpret the result. Compare your answer with the test conducted in part b.

e. What assumptions are necessary to ensure the validity of the inferential procedures applied in parts a鈥揹?

Question:Quality control. Refer to Exercise 5.68. The mean diameter of the bearings produced by the machine is supposed to be .5 inch. The company decides to use the sample mean from Exercise 5.68 to decide whether the process is in control (i.e., whether it is producing bearings with a mean diameter of .5 inch). The machine will be considered out of control if the mean of the sample of n = 25 diameters is less than .4994 inch or larger than .5006 inch. If the true mean diameter of the bearings produced by the machine is .501 inch, what is the approximate probability that the test will imply that the process is out of control?

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