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Facility layout study. Facility layout and material flowpath design are major factors in the productivity analysisof automated manufacturing systems. Facility layout is concerned with the location arrangement of machines and buffers for work-in-process. Flow path design is concerned with the direction of manufacturing material flows (e.g., unidirectional or bidirectional; Lee, Lei, and Pinedo, Annals of Operations Research, 1997). A manufacturer of printed circuit boards is interested in evaluating two alternative existing layout and flowpath designs. The output of each design was monitored for 8 consecutive working days. The data (shown here) are saved in the file. Design 2 appears to be superior to Design 1. Do you agree? Explain

fully.

Working days Design1(Units) Design2(Units)

8/16 1,220 1,273

8/17 1,092 1,363

8/18 1,136 1,342

8/19 1,205 1,471

8/20 1,086 1,229

8/23 1,274 1,457

8/24 1,145 1,263

8/25 1,281 1,368



Short Answer

Expert verified

\(Ha\) is true would be design-2 is greater than design1.

Step by step solution

01

Given information

Using evidence, it is necessary to address whether Design 1 is superior to Design 2.

\(\begin{aligned}{l}n1 &= 8\\n2 &= 8\end{aligned}\)

02

Explaining the variance

The variance measures variability. The amount of scattered is indicated by variance.

The variance is more significant with the mean and the more dispersed the data.

03

Checking whether design2 is greater than design1

\(\begin{aligned}{l}{\sigma ^2}1 &= Variance\,of\,design\,1\\{\sigma ^2}2 &= \,Variance\,of\,design\,2\end{aligned}\)

The test hypothesis is as follows.

\(\begin{aligned}{l}H0:\,{\sigma ^2}1 < {\sigma ^2}2\\Ha:\,{\sigma ^2}1 &= {\sigma ^2}2\end{aligned}\)

Denominator\({S^2}2\) and numerator\({S^2}1\) both

\(df = n1 - 1\)

\(v1 = n1 - 1\)

\(\begin{aligned}{l}df &= 8 - 1\\df &= 7\end{aligned}\)

\(df = n2 - 1\)

\(v2 = n2 - 1\)

\(\begin{aligned}{l}df &= 8 - 1\\df &= 7\end{aligned}\)

Design1\(\left( x \right)\)

\(xi - \bar x\)

\({\left( {xi - \bar x} \right)^2}\)

Design2\(\left( y \right)\)

\(yi - \bar y\)

\({\left( {yi - \bar y} \right)^2}\)

1,220

40.125

1,610.01

1,273

-81.5

6,642.25

1,092

-87.875

7,722.01

1,363

8.5

72.25

1,136

-43.875

1,925.01

1,342

-12.5

156.25

1,205

25.125

631.26

1,471

116.5

13,572.25

1,086

-93.875

8,812.51

1,299

-55.5

3,080.25

1,274

94.125

8,859.51

1,457

102.03

10,410.1209

1,145

-34.875

1,261.26

1,263

-91.5

8372.25

1,281

101.125

10,226.26

1,368

13.5

182.25

Total:9,439

Total:41,047.83

Total:10,836

Total:42,487.879

\(\begin{aligned}{l}\bar x &= \frac{{\sum xi}}{n}\\\bar x &= \frac{{9,439}}{8}\\\bar x &= 1,179.875\end{aligned}\)

\(\begin{aligned}{l}S{1^2} &= \frac{{\sum {{\left( {xi - \bar x} \right)}^2}}}{{n - 1}}\\S{1^2} = \frac{{41,047.83}}{7}\\S{1^2} &= 5,863.97\end{aligned}\)

\(\begin{aligned}{l}\bar y &= \frac{{\sum yi}}{n}\\\bar y &= \frac{{10,836}}{8}\\\bar y = 1,354.5\end{aligned}\)

\(\begin{aligned}{l}S{2^2} &= \frac{{\sum {{\left( {yi - \bar y} \right)}^2}}}{{n - 1}}\\S{2^2} &= \frac{{42,487.879}}{7}\\S{2^2} = 6,069.697\end{aligned}\)

The test statistics will therefore be.

\(\begin{aligned}{l}F &= {\textstyle{{Larger\,\,sample\,\,variance} \over {Smaller\,\,sample\,\,variance}}}\\F &= \frac{{{S^2}1}}{{{S^2}2}}\\F &= \frac{{41,047.83}}{{42,487.879}}\\F &= 0.96610\end{aligned}\)

Reject\(H0:\,{\sigma ^2}1 = {\sigma ^2}2\)for F=0.966 When the calculated design-2 exceeds the design1 .So, reject\(H0:\,{\sigma ^2}1 = {\sigma ^2}2\)

Therefore, this test indicates that both variances will differ. The probability of seeing a value of F at least as similar to \(Ha:{\sigma ^2}1 < {\sigma ^2}2\) as F=0.96610 .So, \(Ha\) is true would be design-2 is greater than design1.

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Most popular questions from this chapter

To compare the means of two populations, independent random samples of 400 observations are selected from each population, with the following results:

Sample 1

Sample 2

x1=5,2751=150

x2=5,2402=200

a. Use a 95%confidence interval to estimate the difference between the population means (12). Interpret the confidence interval.

b. Test the null hypothesis H0:(12)=0versus the alternative hypothesis Ha:(12)0 . Give the significance level of the test and interpret the result.

c. Suppose the test in part b was conducted with the alternative hypothesis Ha:(12)0 . How would your answer to part b change?

d. Test the null hypothesis H0:(12)=25 versus Ha:(12)25. Give the significance level and interpret the result. Compare your answer with the test conducted in part b.

e. What assumptions are necessary to ensure the validity of the inferential procedures applied in parts a鈥揹?

Suppose you want to estimate the difference between two population means correct to within 1.8 with a 95% confidence interval. If prior information suggests that the population variances are approximately equal to 12=22=14 and you want to select independent random samples of equal size from the populations, how large should the sample sizes n1, and n2, be?

Question: The purpose of this exercise is to compare the variability of with the variability of .

a. Suppose the first sample is selected from a population with mean and variance . Within what range should the sample mean vary about of the time in repeated samples of measurements from this distribution? That is, construct an interval extending standard deviations of on each side of .

b. Suppose the second sample is selected independently of the first from a second population with mean and variance . Within what range should the sample mean vary about the time in repeated samples of measurements from this distribution? That is, construct an interval extending standard deviations on each side .

c. Now consider the difference between the two sample means . What are the mean and standard deviation of the sampling distribution ?

d. Within what range should the difference in sample means vary about the time in repeated independent samples of measurements each from the two populations?

e. What, in general, can be said about the variability of the difference between independent sample means relative to the variability of the individual sample means?

Question: The speed with which consumers decide to purchase a product was investigated in the Journal of Consumer Research (August 2011). The researchers theorized that consumers with last names that begin with letters later in the alphabet will tend to acquire items faster than those whose last names begin with letters earlier in the alphabet鈥攃alled the last name effect. MBA students were offered free tickets to an event for which there was a limitedsupply of tickets. The first letter of the last name of those who responded to an email offer in time to receive the tickets was noted as well as the response time (measured in minutes). The researchers compared the response times for two groups of MBA students: (1) those with last names beginning with one of the first nine letters of the alphabet and (2) those with last names beginning with one of the last nine letters of the alphabet. Summary statistics for the two groups are provided in the table.

First 9

Letters: A鈥揑

Last 9

Letters: R鈥揨

Sample size

25

25

Mean response time (minutes)

25.08

19.38

Standard deviation (minutes)

10.41

7.12

Source: Based on K. A. Carlson and J. M. Conrad, 鈥淭he Last Name Effect: How Last Name Influences Acquisition Timing,鈥 Journal of Consumer Research, Vol. 38, No. 2, August 2011.

a. Construct a 95% confidence interval for the difference between the true mean response times for MBA students in the two groups.

b. Based on the interval, part a, which group has the shorter mean response time? Does this result support the researchers鈥 last name effect theory? Explain.

Question: Promotion of supermarket vegetables. A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers(x1) , and the amount of shelf space allocated to the brand (x2 ) . One of the chain鈥檚 supermarkets was randomly selected, and over a 20-week period, x1 and x2 were varied, as reported in the table.

Week

Sales, y

Advertising expenses,

Shelf space,

Interaction term,

1

2010

201

75

15075

2

1850

205

50

10250

3

2400

355

75

26625

4

1575

208

30

6240

5

3550

590

75

44250

6

2015

397

50

19850

7

3908

820

75

61500

8

1870

400

30

12000

9

4877

997

75

74775

10

2190

515

30

15450

11

5005

996

75

74700

12

2500

625

50

31250

13

3005

860

50

43000

14

3480

1012

50

50600

15

5500

1135

75

85125

16

1995

635

30

19050

17

2390

837

30

25110

18

4390

1200

50

60000

19

2785

990

30

29700

20

2989

1205

30

36150

  1. Fit the following model to the data:y0+1x1+2x2+3x1x2+
  2. Conduct an F-test to investigate the overall usefulness of this model. Use=.05 .
  3. Test for the presence of interaction between advertising expenditures and shelf space. Use=.05 .
  4. Explain what it means to say that advertising expenditures and shelf space interact.
  5. Explain how you could be misled by using a first-order model instead of an interaction model to explain how advertising expenditures and shelf space influence sales.
  6. Based on the type of data collected, comment on the assumption of independent errors.
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