A manufacturer of industrial wheels is losing many profitable orders because of the long time it takes
Question:
a. Construct a stem-and-leaf display for the total processing time for each department. Shade the leaves that correspond to "lost" orders in each of the displays, and interpret each of the displays.
b. Using your results from part a, develop "maximum processing time" guidelines for each department that, if followed, will help the firm reduce the number of lost orders.
c. Generate summary statistics for the processing times. Interpret the results.
d. Calculate the z-score corresponding to the maximum processing time guideline you developed in part b for each department, and for the total processing time.
e. Calculate the maximum processing time corresponding to a z-score of 3 for each of the departments. What percentage of the orders exceed these guidelines? How does this agree with Chebyshev's Rule and the Empirical Rule?
f. Repeat part e using a z-score of 2.
g. Compare the percentage of "lost" quotes with corresponding times that exceed at least one of the guidelines in part e to the same percentage using the guidelines in part f. Which set of guidelines would you recommend be adopted? Why?
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780321826237
12th Edition
Authors: James T. McClave, P. George Benson, Terry T Sincich