Statistical Inference Case Study

Overview

The research department of an appliance manufacturing firm has developed a solid-state switch for its blender that the research department claims will reduce appliance returns under the one-year full warranty by 3%–6%. To determine if the claim can be supported, the testing department selects a group of the blenders manufactured with the new switch and a group with the old switch and subjects them to a normal year’s worth of wear. Out of 300 blenders tested with the new switch, twelve would have been returned. Twenty-one would have been returned out of the 300 blenders with the old switch. As the manager of the appliance manufacturing process, use a statistical procedure to verify or refute the research department’s claim.

Instructions

Create 8–10 powerpoint slides, including a cover and a sources list, for a presentation to the director of the manufacturing plant in which you:

1. Summarize the problem with the appliance manufacturing firm’s blenders.
2. Propose the statistical inference to use to solve the problem. Support your decision using a scholarly reference.
3. Using Excel:
   • Develop a flowchart for the proposed statistical inference, including specific steps.
   • Compute all statistical calculations using Excel.
4. Place your flowchart in a slide.
5. Determine if you can verify or refute the research department’s claim.
6. Choose sources that are credible, relevant, and appropriate.