A Manufacturing Company Is Considering Changing Suppliers of a Particular

Essay

A manufacturing company is considering changing suppliers of a particular raw material. The standard deviation of days until delivery for the current supplier is 3. A sample of five delivery times is taken from the new supplier. The data follow:
2
2
1
5
3
The manufacturing company will use the new supplier if the variance in delivery time is less than that of the current supplier. Use Excel to determine whether the company should use the new supplier. Use a 10% level of significance.