A pharmaceutical manufacturer purchases raw material from two different suppliers. The

Chapter 8, Problem 8.126

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A pharmaceutical manufacturer purchases raw material from two different suppliers. The mean level of impurities is approximately the same for both suppliers, but the manufacturer is concerned about the variability in the amount of impurities from shipment to shipment. If the level of impurities tends to vary excessively for one source of supply, this could affect the quality of the final product. To compare the variation in percentage impurities for the two suppliers, the manufacturer selects ten shipments from each supplier and measures the percentage of impurities in each shipment. The sample variances were s2 1 = .273 and s2 2 = .094, respectively. Form a 95% confidence interval for the ratio of the true population variances.

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