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 2º - 4º 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 it was statistically proven that the probability of temperature going outside the 2º - 4º 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. The average temperature data at the date level is given in the file “Cold_Storage_Temp_Data_.csv” 

1. Find mean cold storage temperature for Summer, Winter, and Rainy Season. 

2. Find the overall mean for the full year. 

3. Find Standard Deviation for the full year. 

4. Assume Normal distribution, what is the probability of temperature having fallen below 2º C? 

5. Assume Normal distribution, what is the probability of temperature having gone above 4º C? 

6. What will be the penalty for the AMC Company?

 
 
 
 
 
 

Transcribed Image Text:

Season winter Temperature 2.3 Month Date Jan Winter Jan 2 2.2 Winter Jan 3 2.4 winter 4 2.8 Jan Winter Jan 5 2.5 Winter Jan 2.4 Winter Jan 2.8 Winter 8 3 Jan Winter 2.4 Jan Winter Jan 10 2.9 11 2.4 2.5 Winter Jan Winter Jan 12 Winter Jan 13 2.6 Winter Jan 14 2.9 Winter Jan 15 3.4 Winter Jan 16 3.9 Winter Jan 17 3.3 Winter Jan 18 3.3 Winter Jan 19 2.8 2.4 2.7 Winter Jan 20 Winter Jan 21 Winter 22 2.8 2.7 Jan Winter Jan 23 Winter Jan 24 2.4 Winter Jan 25 3.5 Winter Jan 26 3.8 Winter Jan 27 2.6 winter Jan 28 2.8 Winter Jan 29 3.1 Winter Jan 30 2.5 Winter Jan 31 2.4 1 Summer Summer Feb 3.1 2 3.3 3 Feb Summer Feb 3 3.9 3.3 Summer Feb 4 Sumrer Feb 5 Summer Feb 3.1 Summer Feb 2.9 Summer Feb 8 2.9 Summer Feb 3.4 3 3.5 3.2 Sumrer Feb 10 Summer Feb 11 Summer Summer Feb 12 Feb 13 3.2 Season winter Temperature 2.3 Month Date Jan Winter Jan 2 2.2 Winter Jan 3 2.4 winter 4 2.8 Jan Winter Jan 5 2.5 Winter Jan 2.4 Winter Jan 2.8 Winter 8 3 Jan Winter 2.4 Jan Winter Jan 10 2.9 11 2.4 2.5 Winter Jan Winter Jan 12 Winter Jan 13 2.6 Winter Jan 14 2.9 Winter Jan 15 3.4 Winter Jan 16 3.9 Winter Jan 17 3.3 Winter Jan 18 3.3 Winter Jan 19 2.8 2.4 2.7 Winter Jan 20 Winter Jan 21 Winter 22 2.8 2.7 Jan Winter Jan 23 Winter Jan 24 2.4 Winter Jan 25 3.5 Winter Jan 26 3.8 Winter Jan 27 2.6 winter Jan 28 2.8 Winter Jan 29 3.1 Winter Jan 30 2.5 Winter Jan 31 2.4 1 Summer Summer Feb 3.1 2 3.3 3 Feb Summer Feb 3 3.9 3.3 Summer Feb 4 Sumrer Feb 5 Summer Feb 3.1 Summer Feb 2.9 Summer Feb 8 2.9 Summer Feb 3.4 3 3.5 3.2 Sumrer Feb 10 Summer Feb 11 Summer Summer Feb 12 Feb 13 3.2

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