ACAT president ask Mittra his vicepresident of operations to

A-CAT president ask 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 speculates that the mean number of transformers that are needed is less than 745 transformers. His analysis revelas the following. t = 2.32 and p = 0.9798

Anova: Single Factor

SUMMARY

Groups       Count      Sum      Average              Variance

2006           12           9614      801.1667             7020.515

2007           12           10784    898.6667             18750.06

2008           12           11884    990.3333            21117.88

3.284918

Within Groups                515773           33       15629.48

Total                               730545.2        35

The operations manager is takes with developing a model for forecasting tfansformer requirements based on sales of refrigerator. Below summarizes sale of refrigerator and transformer requirment by quarter for the periods 2006 -2010 .

3513

             1. Submit a selection of statistical tools and data analysis.

2. Determine the category of the provided data in given in the case study. What is the relationship between the type of data and the tool?

3. From the identified family of statisical tool, select the most appropriate tool for analyzing the data provided in the given case study.

4. Describe the quantitative method that will best inform data-driven decisions.

Solution

1. The simple regression model is the best statistical tool for the given data.

2. These are the quantitative data under the category of Ratio level data considered to be highest level of measurement.

3. Regression technique has been selected to study the cause and effect relationship between sales of refrigerator and transformer requirement and also to forecast transformer requirement based on sales of refrigerator.

4.

The forecasting model :

Y = 1233.4994 + 0.31490 *x

i.e. Transformer requirement = 1233.4994 + 0.31490*(sales of refrigerators)