(a) Three suppliers provide the following data on defective spare parts. supplier Good Minor defect Major defect A 90 3 7 B 170 18 7 C 135 6 9 (i) Use α =0.05 and test for independence between supplier and spare part quality. 2 (ii) What does the result of your analysis tell the purchasing department?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 1.10A
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QUESTION ONE
(a) Three suppliers provide the following data on defective spare parts.

supplier

Good

Minor defect

Major defect

A

90

3

7

B

170

18

7

C

135

6

9

(i) Use α =0.05 and test for independence between supplier and spare part quality.
2
(ii) What does the result of your analysis tell the purchasing department?

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