Question

A company manager plans to purchase a machine. The company requires a high quality machine. The manager is currently considering two companies that supply this machine. The machine from company A can produce approximately1050 units in average per day, but the standard deviation of this machine is about 250 units per day; while the machine from company B can produce approximately 900 units in average per day, but the standard deviation of this machine is about 100 units per day. Both of these two companies guarantee at least 10 years life. In addition, both prices are similar although machine A is a little bit higher. Price is not the main concern for the manager because both prices are under their budget. However, the manager cannot decide which machine should be purchased, because he is not sure what test he needs to conduct. Can you recommend the manager what test the manager should conduct? Should the manager conduct the test about the difference between two population means or the test about the difference between two population variances or both? Discuss and explain your reasons. You must provide your statistical analysis and reasons.

Answer 1

Manager should conduct test about the difference between two populationvariance because which says whether deviations are same or not

After that he should test about the difference between two population mean which says whether the average perfomance are same.

Mean alone is not needed to know the perfomance.Even if the mean is same standard deviation may differ which says about consistency