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 Belt's effort requiring that the average cost of an internal critical raw material component be less than or equal to $3,600 in order to stay within budget. Using a sample of 42 first article components, a Mean of the new product upgrade price of $3,200 and a Standard Deviation of $180 was estimated. Based on the data provided, the Z value for the data assuming a Normal Distribution is?

Question

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 Belt's effort requiring that the average cost of an internal critical raw material component be less than or equal to $3,600 in order to stay within budget.  Using a sample of 42 first article components, a Mean of the new product upgrade price of $3,200 and a Standard Deviation of $180 was estimated. Based on the data provided, the Z value for the data assuming a Normal Distribution is?

Quizplus · Accepted Answer

The Z value is calculated using the formula: Z = (X̄ - μ) / (σ/√n), where X̄ is the sample mean, μ is the population mean, σ is the standard deviation, and n is the sample size. Here, Z = (3200 - 3600) / (180/√42) = -400 / (180/√42) ≈ -2.22.

A Belt Working in a Supply Chain Environment Has to Make