A Purchasing Agent for a Trucking Company Is Shopping for Replacement

Multiple Choice

A purchasing agent for a trucking company is shopping for replacement tires for their trucks from
Two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of
100,000 kms with a standard deviation of 10,000 kms. Supplier B's tires have an average life of
100,000 kms with a standard deviation of 2,000 kms. Which of the following statements is true?

A) The two distributions of tire life are the same
B) On average, Supplier A's tires have a longer life then Supplier B's tires
C) The life of Supplier B's tire is more predictable than the life of Supplier A's tires
D) The dispersion of Supplier A's tire life is less than the dispersion of Supplier B's tire life
E) The life of Supplier A's tire is more predictable than the life of Supplier B's tires