Engineering Statistics Harvard Case Solution & Analysis

Engineering Statistics Case Study Solution

Independent sample T-test:

Research Question:

Is there a statistically significant difference between number of suppliers and its three technical machines maintenance costs, which are Standard, DAC and Operator?

Null Hypothesis:

There is no statistically significant difference between number of suppliers and its three technical machines maintenance costs, which are Standard, DAC and Operator.

Alternate Hypothesis:

There is a statistically significant difference between the number of suppliers and their three technical machines maintenance costs, which are Standard, DAC and Operator.

For standard technical machine, p-value is less than 0.05, which provides a strong statistical evidences to reject the null hypothesis ultimately, to accept alternate hypothesis, which tells us that there is a statistical difference between the standard technical machine’s maintenance costs from 4 suppliers.

For DAC technical machine, p-value is less than 0.05, which provides a strong statistical evidences to reject null hypothesis, ultimately to accept alternate hypothesis, which tells that there is a statistically difference between DAC technical machine’s maintenance costs from 4 suppliers.

For Operator technical machine, p-value is greater than 0.05, which does not provide a strong statistical evidences to reject null hypothesis ultimately to reject alternate hypothesis, which tells us that there is a statistically difference between DAC technical machine’s maintenance costs from 4 suppliers.

Independent Chi Square Test:

Research Question:

Is there a statistically significant relationship between the number of suppliers and their three technical machines’ maintenance costs which are Standard, DAC and Operator?

Null Hypothesis:

There is no statistically significant relationship between the number of suppliers and its three technical machines’ maintenance costs, which are Standard, DAC and Operator.

Alternate Hypothesis:

There is a statistically significant relationship between the number of suppliers and their three technical machines maintenance costs, which are Standard, DAC and Operator.

For standard technical machine, p-value is greater than 0.05, which does not provide a strong statistical evidences to reject null hypothesis, which tells that there is a statistically significant relationship between the standard technical machines’ maintenance costs from 4 suppliers.

For DAC technical machine, p-value is greater than 0.05, which does not provide a strong statistical evidences to reject null hypothesis, indicating that there is a statistically significant relationship between the DAC technical machines’ maintenance costs from 4 suppliers.

For Operator technical machine, p-value is greater than 0.05, which does not provide a strong statistical evidences to reject null hypothesis ultimately to reject alternate hypothesis, which tells that there is a statistically significant differences between DAC technical machine’s maintenance costs from 4 suppliers.

Recommendations and Conclusion:

After performing an engineering analysis and a statistical analysis, it has been concluded that the supplier one is capable to meet the project specifications and requirements related to the purchase of three different technical machines,because his average monthly cost of maintenance for three technical machines is less than the other three suppliers.

The total average monthly maintenance for technical machines purchased by supplier one is $ 7,100, which is lesser than the other suppliers’ average monthly maintenance cost for three technical products, which is $ 16,313 for supplier two, $ 13,366 for supplier three and $ 11,889 for supplier four.

Exhibit 1: Regression Analysis

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .518 a .268 .263 2261.7156
a. Predictors: (Constant), Error
ANOVA a
Model Sum of Squares df Mean Square F Sig.
1 Regression 266602632.395 1 266602632.395 52.118 .000b
Residual 726380755.542 142 5115357.433
Total 992983387.938 143
a. Dependent Variable: Standrad
b. Predictors: (Constant), Error
Coefficients a
Model Unstandardized Coefficients Standardized Coefficients t Sig. 95.0% Confidence Interval for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 2306.115 306.992 7.512 .000 1699.249 2912.981
Error 46.573 6.451 .518 7.219 .000 33.820 59.326
a. Dependent Variable: Standrad

Exhibit 2: Independent Chi Square Test

Chi-Square Tests
Value df Asymptotic Significance (2-sided)
Pearson Chi-Square 140.000 a 135 .367
Likelihood Ratio 130.312 135 .598
Linear-by-Linear Association .008 1 .930
N of Valid Cases 48
a. 184 cells (100.0%) have expected count less than 5. The minimum expected count is .25.

 

Symmetric Measures
Value Asymptotic Standardized Error a Approximate Tb Approximate Significance
Interval by Interval Pearson's R .013 .130 .087 .931c
Ordinal by Ordinal Spear man Correlation .074 .141 .503 .617c
N of Valid Cases 48
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

Exhibit 3: Percentiles / Quartiles

Percentiles
Supplier Percentiles
5 10 25 50 75 90 95
Weighted Average(Definition 1) Standrad 1 1024.000 1039.600 1372.500 2180.000 3600.000 4227.000 .
2 2100.000 2604.000 3805.000 4180.000 8102.500 11175.000 .
3 730.000 1384.000 3505.000 4175.000 5831.250 6870.000 .
4 1430.000 1535.000 3802.500 4215.000 5815.000 11226.000 .
DAC 1 310.000 325.000 475.000 1105.000 1682.500 2323.000 .
2 1670.000 2030.000 3270.000 6500.000 6855.000 8184.000 .
3 530.000 587.000 1615.000 3325.000 5662.500 11158.000 .
4 1700.000 1757.000 1905.000 3300.000 4160.000 6035.000 .
Operator 1 870.000 972.000 2157.500 3315.000 4175.000 8079.000 .
2 2760.000 2799.000 2955.000 3830.000 6995.000 10257.000 .
3 530.000 608.000 1487.500 4180.000 7805.000 9397.000 .
4 970.000 973.000 1207.500 4110.000 4867.500 7930.000 .
Tukey's Hinges Standrad 1 1455.000 2180.000 3500.000
2 3830.000 4180.000 7665.000
3 3590.000 4175.000 5317.500
4 3805.000 4215.000 5480.000
DAC 1 480.000 1105.000 1645.000
2 3330.000 6500.000 6820.000
3 2110.000 3325.000 5205.000
4 1910.000 3300.000 4020.000
Operator 1 2205.000 3315.000 4120.000
2 3010.000 3830.000 6650.000
3 2145.000 4180.000 7490.000
4 1215.000 4110.000 4845.000
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