1. The new Red Hat Next Generation valves are durable and reliable.

They can operate with high air pressure of

a new and stronger version of the Red Hat Next Generation valve, they want to set up an experimental design
tests under three different temperature conditions, 23oC, 49oC, and 68oC. In addition, suppose ASCO uses tw
materials that are used to manufacture the valves. Some valves are made primarily of raw materials supplied
supplier 2. Consequently, a 2 x 3 factorial design is appropriate for the experiment, with temperature and suppl
as the dependent variable. An appropriate sampling frame has produced the data shown below. Analyze the da
conducting the study, what conclusions would you report to

Temperature
23°c 49°c 68°c Means
2,257 2,207 2,201 2,222
Supplier 1 2,479 2,491 2,173 2,381
2,361 2,314 2,192 2,289
2,215 2,230 2,229 2,225
Supplier 2 2,308 2,359 2,088 2,252
2,511 2,488 2,287 2,429
Means 2355.16666667 2348.166666667 2195 2,299

ANOVA
Source of Variation SS df MS F
Supplier 88.8888888889 1 88.88888888888 0.006414753934
Temperature 98324.7777778 2 49162.38888889 3.547852059737
Interaction 1517.44444444 2 758.7222222222 0.054753934048
Within 166283.333333 12 13856.94444444

Total 266214.444444 17

A. The hypothesis being tested is:

Ho: There is no main effect of Supplier
Ha: There is a main effect of Supplier

Conclusion:
The p-value is 0.9375.
Since the p-value (0.9375) is greater than the significance level (0.05), we fail to reject the null hypothesis.
Therefore, we cannot conclude that there is a main effect of Supplier.

B. The hypothesis being tested is:

Ho: There is no main effect of Temperature
Ha: There is a main effect of Temperature

Conclusion:
The p-value is 0.0616.
 Since the p-value (0.0616) is greater than the significance level (0.05), we fail to reject the null hypothesis.
Therefore, we cannot conclude that there is a main effect of Temperature.

C. The hypothesis being tested is:

Ho: There is no interaction effect
Ha: There is an interaction effect

Conclusion:
The p-value is 0.9470.
Since the p-value (0.9470) is greater than the significance level (0.05), we fail to reject the null hypothesis.
Therefore, we cannot conclude that there is an interaction effect.

2. It is estimated that these Red Hat energy-efficient valves can save a great deal of power usage and lower the
valve, therefore making the Red Hat valves more attractive. ASCO does business with pipeline companies globa
world, ASCO is keen on finding out whether the cost saved over the installed life of the valve is significantly diffe
countries, Canada, Spain, Japan and United States, are chosen for the study. Pipeline companies are selected f
A random sample of the data is shown below. Test whether there is a difference in relative cost savings in each o
present to the management of ASCO in which your conclusions are explained, with support from the statistical te

Canada Spain Japan U.S.

12 9 14 13
14 10.5 14 12.5
11.5 11 13 14
10 14 13.5 11.5
14 8.5 12 14
13 12 12.5 13

The hypothesis being tested is:

Ho: there is no significant difference in relative cost savings in each of these countries.
Ha: there is a significant difference in relative cost savings in each of these countries.

Total sum of squares = 3133.809 -[248.982 / 24] = 550.849.

Treatment sum of squares = (15552.489 / 6) - 2582.96 = 9.1215
Error sum of squares = 550.848 - 9.1215 = 541.7275.

degrees of mean sum of

Source of Variation sum of squares F-ratio
freedom squares
Countries 3 9.1215 3.0405 0.1122
Error 20 541.7275 27.0864
Total 23 550.849

Conclusion:
The p-value of F(3,20) at 0.05 is 3.10.
 Here calculated value<p-value, so we accept Ho.
Therefore, there is no significant difference in relative cost savings in each of these countries

3. As previously mentioned, ASCO has been able to reduce its lead time. suppose ASCO’s original lead time av
80%. As such, most lead times now average slightly below two weeks. ASCO is interested in knowing whether l
is manufacturing. To control the experiment, they will use as a blocking variable the day of the week the valve w
week. The sample data are given below in weeks. Analyze the data and discuss your findings.

Two-way Three-way Four-way

Monday 1.7 1.9 2.2
Tuesday 1.9 1.8 1.9
Wednesday 1 2.3 2.4
Thursday 1.4 1.5 1.8
Friday 2.1 2 2.5

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Column 1 5 8.1 1.62 0.187
Column 2 5 9.5 1.9 0.085
Column 3 5 10.8 2.16 0.093

ANOVA
Source of Variation SS df MS F
Between Groups 0.72933333333 2 0.364666666667 2.997260273973
Within Groups 1.46 12 0.121666666667

Total 2.18933333333 14

Conclusion:
P-value is 0.088 which is greater than 0.05.
At 5% level of significance, we cannot say that the effects of blocking variables are significant.
 rate with high air pressure of up to 2,200 psi (pounds per square inch). Suppose ASCO develops
et up an experimental design to test the strength of the new valve, but they want to conduct the
ition, suppose ASCO uses two different suppliers (supplier 1 and supplier 2) for the synthetic
ily of raw materials supplied by supplier 1, and some are made primarily of raw materials from
with temperature and supplier as the independent variables and air pressure (measured in psi)
hown below. Analyze the data and discuss the business implications of the findings. If you were
nclusions would you report to the company?

P-value F crit
0.937484177076 4.747225
0.061584782978 3.885294
0.94695319561 3.885294

ct the null hypothesis.

ct the null hypothesis.

ct the null hypothesis.

power usage and lower the total cost of ownership by up to 14% over the installed life of the
ith pipeline companies globally. In an attempt to position itself as a market leader across the
he valve is significantly different among the different countries in which it does business. Four
ne companies are selected from each country. The companies keep a log of valve power usage.
elative cost savings in each of these countries. Justify your answer and prepare a short report to
support from the statistical test that you performed.
ASCO’s original lead time average 10 weeks and that the reduction is in the neighborhood of
erested in knowing whether lead times differ significantly according to the type of Red Hat valve it
day of the week the valve was ordered. One lead time was selected per valve per day of the
ur findings.

P-value F crit
0.087952015945 3.885294
 Anova: Two-Factor With Replication

SUMMARY23°c 49°c 68°c Total

Supplier 1
Count 3 3 3 9
Sum 7097 7012 6566 20675
Average 2365.667 2337.333 2188.667 2297.222
Variance 12337.33 20572.33 204.3333 15057.69

Supplier 2
Count 3 3 3 9
Sum 7034 7077 6604 20715
Average 2344.667 2359 2201.333 2301.667
Variance 22912.33 16641 10474.33 18208

Total
Count 6 6 6
Sum 14131 14089 13170
Average 2355.167 2348.167 2195
Variance 14232.17 15026.17 4319.6

ANOVA
Source of VariationSS df MS F P-value F crit
Sample 88.88889 1 88.88889 0.006415 0.937484 4.747225
Columns 98324.78 2 49162.39 3.547852 0.061585 3.885294
Interaction 1517.444 2 758.7222 0.054754 0.946953 3.885294
Within 166283.3 12 13856.94

Total 266214.4 17
 Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Column 1 5 8.1 1.62 0.187
Column 2 5 9.5 1.9 0.085
Column 3 5 10.8 2.16 0.093

ANOVA
Source of VariationSS df MS F P-value F crit
Between G 0.729333 2 0.364667 2.99726 0.087952 3.885294
Within Gro 1.46 12 0.121667

Total 2.189333 14