Q.65 A retailer entered into an exclu... [FREE SOLUTION]

91影视

The Practice of Statistics for AP

David Moore,Daren Starnes,Dan Yates

$Math Studyset 91影视 Explanations$ Math

4th Edition 路 809 pages

ISBN: 9781319113339

Chapter 9: Q.65 (page 587)

A retailer entered into an exclusive agreement with a supplier who guaranteed to provide all products at competitive prices. The retailer eventually began to purchase supplies from other vendors who offered better prices. The original supplier filed a lawsuit claiming violation of the agreement. In defense, the retailer had an audit performed on a random sample of 25 invoices. For each audited invoice, all purchases made from other suppliers were examined and compared with those offered by the original supplier. The percent of purchases on each invoice for which an alternative supplier offered a lower price than the original supplier was recorded.26 For example, a data value of 38 means that the price would be lower with a different supplier for 38% of the items on the invoice. A histogram and some computer output for these data are shown below. Explain why we should not carry out a one-sample t test in this setting.

Short Answer

Expert verified

we cannot carry out a one-sample t-test in this setting as the sample has been selected through simple random technique.

Step by step solution

Introduction

A test statistic is a statistic utilized in statistical hypothesis testing. A hypothesis test is typically specified as far as a test statistic, considered as a numerical synopsis of an informational collection that decreases the information to one worth that can be utilized to play out the hypothesis test.

Explanation

The assumption of normality is not fulfilled as the sample size = $20$ which is less than $30$ .

Sample selection has been done through a simple random technique.

Hence we cannot carry out a one-sample t-test in this setting as the sample has been selected through a simple random technique and the sample size is $20$ which is less than $30$ hence the normality assumption is not satisfied.