Professional Documents
Culture Documents
Storage PDF
Storage PDF
Case Study)
- Sanan S Olachery.
Page | 1
Contents:
Problem 1: - Pg3
Objective - Pg3
Problem Solution Working - Pg4 to Pg9
Problem 2: - Pg 10
Objective - Pg 10
Problem Solution Working - Pg11 to Pg12
Page | 2
Problem 1:
Cold Storage started its operations in Jan 2016. They are in the business of storing
Pasteurized Fresh Whole or Skimmed Milk, Sweet Cream, Flavored Milk Drinks. To
ensure that there is no change of texture, body appearance, separation of fats the
optimal temperature to be maintained is between 2 - 4 C.
In the first year of business they outsourced the plant maintenance work to a
professional company with stiff penalty clauses. It was agreed that if the it was
statistically proven that probability of temperature going outside the 2 - 4 C
during the one-year contract was above 2.5% and less than 5% then the penalty
would be 10% of AMC (annual maintenance case). In case it exceeded 5% then
the penalty would be 25% of the AMC fee.
Objective
With the Data Set provided, objective of the Assessment is to find out solutions
for the following:
Mean Cold Storage Temperature in different season.
Overall Mean for the Full Year.
Standard Deviation for the Full Year.
Assuming Normal distribution, what is the probability of temperature
having fallen below 2 C?
Assuming Normal distribution, what is the probability of temperature
having gone above 4 C?
Penalty for the AMC Company
NOTE: in order to derive at the solutions I have used both MS Excel and R Studio.
Page | 3
Problem Solution Working.
Solution: Dataset has information of 3 seasons namely summer, rainy and winter.
Accordingly Mean Cold Storage Temperature is derived in MS Excel. & R Studio as
given below:
MS Excel
Seasons Average of Temperature
Rainy 3.039344
Summer 3.153333
Winter 2.700813
R Studio
Page | 4
Q2.Overall Mean for the Full Year.
Solution: The overall mean for the full year is 2.96274 and it is calculated in Ms.
Excel & R Studio, as mention below.
MS. Excel
Seasons Average of Temperature
Rainy 3.03934
Summer 3.15333
Winter 2.70081
Grand Total 2.96274
R Studio
Page | 5
Q3. Standard Deviation for the Full Year.
Solution: Standard Deviation for the full year is 0.5085890 and it is calculated in
Ms. Excel & R Studio, as mention below.
MS. Excel
Seasons StdDev of Temperature
Rainy 0.5916160
Summer 0.3963984
Winter 0.4007157
Grand Total 0.5085890
R Studio
Page | 6
Q4. Assuming Normal distribution, what is the probability of temperature having
fallen below 2 C?
Ms Excel
Formula =NORMDIST(2,2.96274,0.508589,TRUE)
Result 0.02918141
R Studio
Page | 7
Q5. Assuming Normal distribution, what is the probability of temperature having
gone above 4 C?
Page | 8
Q6.Penalty for the AMC Company
Page | 9
Problem 2:
In Mar 2018, Cold Storage started getting complaints from their Clients that they
have been getting complaints from end consumers of the dairy products going
sour and often smelling. On getting these complaints, the supervisor pulls out
data of last 35 days’ temperatures. As a safety measure, the Supervisor decides to
be vigilant to maintain the temperature 3.9 C or below.
Assume 3.9 C as upper acceptable value for mean temperature and at alpha = 0.1
do you feel that there is need for some corrective action in the Cold Storage Plant
or is it that the problem is from procurement side from where Cold Storage is
getting the Dairy Products.
Objective
With the Data Set provided, objective of the Assessment is to find out solutions
for the following:
Which Hypothesis test shall be performed to check the if corrective action
is needed at the cold storage plant? Justify your answer.
State the Hypothesis, perform hypothesis test and determine p-value.
Give your inference.
Page | 10
Problem Solution Working.
Q1. Which Hypothesis test shall be performed to check the if corrective action is
needed at the cold storage plant? Justify your answer.
Solution:
Pre requisites:
Mean value = 3.9742
Mu= 3.9c
N= 35
35 = 5.916
Standard Deviation = 0.1596
Null Hypothesis =Ho:mu<=3.9
Alternative Hypothesis = H1: mu>3.9
Degree of Freedom = N-1 ie. 35-1 = 34
=0.07858
The Alpha Value is more than the Z value we can accept the Null Hypothesis.
Page | 11
Q2. Determining P Value by performing Hypothesis Test.
Solution:
Calculating Hypothesis using T test
3.9742 - 3.9/0.1596/35
= 2.5931
=0.07858
Q3. Inference
Solution:
Basis the Hypothesis Test results we can conclude that there is no corrective
actions required and that the problem is from procurement side from where Cold
Storage is getting the Dairy Products.
Page | 12