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Question 15

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belts effort requiring that the average cost of an internal critical raw material component be less than or equal to $4,200 in order to stay within budget. Using a sample of 35 first article components, a Mean of the new product upgrade price of $4,060, and a Standard Deviation of $98 was estimated. The Alternative Hypothesis in the above example is?

    Correct Answer: D

    The alternative hypothesis is a statement that suggests an effect or difference exists, opposing the null hypothesis. In this scenario, the purchasing manager requires that the average cost to be less than or equal to $4,200. The null hypothesis (H0) would be that the mean cost is less than or equal to $4,200. Consequently, the alternative hypothesis (Ha) would be that the mean cost is greater than $4,200. However, since the manager’s requirement is to ensure the cost stays within the budget, we are testing that it does not exceed $4,200, symbolizing the alternative hypothesis which states that the mean cost is less than $4,200.

Discussion
turbosiputOption: D

The answer should be D?