stats homework milestone 2

A-Cat Corporation produces voltage regulators which are used in the refrigerators that the company sells. In order to produce these voltage regulators, A-Cat keeps a continuous supply of transformers in stock. At times the number of transformers in stock is either too high or too low. The supplier of these transformers is flexible in price depending on the quantity ordered at one time so it is necessary to estimate the number needed as accurately as possible. The Operations Head has been assigned two tasks in order to estimate how many transformers will be needed to meet demand. The first task is to develop an analysis of the 2006 data and present a report with recommendations. The second task is to develop a report which a lower grade clerk in stores should be able follow. Using the product data from 2006 below.

2006

Mean 801.1667

Standard Error 24.18766

Median 793

Mode 708

Standard

Deviation 83.78851

Sample Variance 7020.515

Kurtosis -1.62662

Skewness 0.122258

Range 221

Minimum 695

Maximum 916

Sum 9614

Count 12

Mittra, speculates that the mean number of transformers that are needed is less than 745 transformers and he used his analysis for to find the following: t = 2.32 p = .9798 which tells us that mean number of transformers needed is not less than 745 but at least 745. Because the data used is older, the operations manager is assuming that the requirements are an underestimation and feels the mean required exceeds 1000 transformers and decides to test this using the most recent data.

Quantifiable factors that would affect operational performance would be the amount of the number of transformers needed for each voltage regulator and the number of refrigerators to be sold.

A good problem statement for this project would be the following:

There have been times when A-Cat Corporation has either too many transformers in stock or too few. The amount of transformers needed to be in stock has always been guessed leading to inaccurate stock requirements which in turn leads to missed deadlines and unused products both of which can be costly. Achieving a more accurate estimate of the mean required could save production time and revenue.

In order to resolve this problem, a one-way analysis of variance (ANOVA) analysis using data from 2006–2010, will be used to more accurately estimate the mean number of transformers required to be in stock. Using analysis, A-Cat will adjust the number of transformers to be kept in stock.