QSO 510 Final Project Case Addendum

QSO 510 Final Project Case Addendum - :Wehavealways ....

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QSO 510 Final Project Case Addendum Vice-president Arun Mittra speculates: We have always  estimated how many transformers will be needed to meet demand. The usual method is to look at the  sales figures of the last two to three months and also the sales figures of the last two years in the same  month. Next make a guess as to how many transformers will be needed. Either we have too many  transformers in stock, or there are times when there are not enough to meet our normal production levels. It is a classic case of both understocking and overstocking. Ratnaparkhi, operations head, has been given two charges by Mittra. First, to develop an analysis of the data and present a report with  recommendations. Second, “to come up with a report that even a lower grade clerk in stores should be  able to fathom and follow.” In an effort to develop a report that is understood by all, Ratnaparkhi decides  to provide incremental amounts of information to his operations manager, who is assigned the task of  developing the complete analyses. A-Cat Corporation is committed to the pursuit of a robust statistical  process control (quality control) program to monitor the quality of its transformers. Ratnaparkhi, aware  that the construction of quality control charts depends on means and ranges, provides the following  descriptive statistics for 2006 (from Exhibit 1). 2006 Mean 801.1667 Standard Error 24.18766 Median 793 Mode Standard Deviation 708 83.78851 Sample Variance 7020.515 Kurtosis -1.62662 Skewness  0.122258 Range 221 Minimum 695 Maximum 916 Sum 9614 Count 12 The operations manager is  assigned the task of developing descriptive statistics for the remaining years, 2007–2010, that are to be  submitted to the quality control department. A-Cat’s president asks Mittra, his vice-president of  operations, to provide the sales department with an estimate of the mean number of transformers that are required to produce voltage regulators. Mittra, recalling the product data from 2006, which was the last  year he supervised the production line, speculates that the mean number of transformers that are needed is less than 745 transformers. His analysis reveals the following: t = 2.32 p = .9798 This suggests that the mean number of transformers needed is not less than 745 but at least 745 transformers. Given that Mittra uses older (2006) data, his operations manager knows that he substantially underestimates current  transformers requirements. She believes that the mean number of transformers required exceeds 1000  transformers and decides to test this using the most recent (2010) data. Initially, the operations manager  possessed only data for years 2006 to 2008. However, she strongly believes that the mean number of 
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  • Spring '13
  • WenjunGu
  • Null hypothesis, 3rd millennium, 24th century, mean number

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