UPSC MainsMANAGEMENT-PAPER-II201815 Marks
Q2.

Sample Mean Probability: Electric Saw Assembly

A manufacturer of machine tools claims that the mean amount of time required to assemble their top-of-the-line electric saw is 80 minutes with a standard deviation of 40 minutes. Data was collected from a random sample of 64 past purchases of this electric saw. What is the probability that the sample mean will be greater than 88 minutes?

How to Approach

This question tests the understanding of statistical inference, specifically hypothesis testing and the application of the Central Limit Theorem. The approach should involve identifying the given parameters (mean, standard deviation, sample size), formulating the null and alternative hypotheses, calculating the z-score, and then finding the probability using the standard normal distribution table or a statistical calculator. The answer should demonstrate a clear understanding of sampling distributions and their role in statistical analysis.

Model Answer

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Introduction

In the realm of quality control and operations management, understanding process variability is crucial for manufacturers. Statistical process control relies heavily on sampling and inference to assess whether a process is operating as intended. The Central Limit Theorem states that the distribution of sample means will approximate a normal distribution, regardless of the underlying population distribution, provided the sample size is sufficiently large. This question assesses the probability of observing a sample mean exceeding a specified value, given the manufacturer’s claims about the assembly time of their electric saw.

Understanding the Problem

We are given the following information:

  • Population mean (μ) = 80 minutes
  • Population standard deviation (σ) = 40 minutes
  • Sample size (n) = 64
  • We want to find the probability that the sample mean (x̄) > 88 minutes

Formulating Hypotheses

While not explicitly asked for, framing the hypotheses clarifies the problem.

  • Null Hypothesis (H0): μ = 80 minutes
  • Alternative Hypothesis (H1): μ > 80 minutes

Calculating the Standard Error

The standard error (SE) of the sample mean is calculated as:

SE = σ / √n = 40 / √64 = 40 / 8 = 5 minutes

Calculating the Z-Score

The z-score measures how many standard errors the sample mean is away from the population mean. It is calculated as:

z = (x̄ - μ) / SE = (88 - 80) / 5 = 8 / 5 = 1.6

Finding the Probability

We want to find P(x̄ > 88), which is equivalent to finding P(z > 1.6). Using a standard normal distribution table or a statistical calculator, we find the area to the left of z = 1.6 is approximately 0.9452. Therefore, the area to the right (P(z > 1.6)) is:

P(z > 1.6) = 1 - P(z ≤ 1.6) = 1 - 0.9452 = 0.0548

Conclusion based on the Calculation

Therefore, the probability that the sample mean will be greater than 88 minutes is approximately 0.0548 or 5.48%. This suggests that observing a sample mean of 88 minutes or higher is relatively unlikely if the manufacturer's claim of a mean assembly time of 80 minutes is true.

Table Summarizing the Calculations

Parameter Value
Population Mean (μ) 80 minutes
Population Standard Deviation (σ) 40 minutes
Sample Size (n) 64
Sample Mean (x̄) 88 minutes
Standard Error (SE) 5 minutes
Z-Score (z) 1.6
Probability (P(x̄ > 88)) 0.0548

Conclusion

In conclusion, the probability of observing a sample mean assembly time greater than 88 minutes, given the manufacturer’s claims, is approximately 5.48%. This relatively low probability suggests that the observed sample mean is somewhat unusual and might warrant further investigation into the manufacturing process. The application of the Central Limit Theorem and z-score calculation provides a robust framework for assessing such claims in operations management and quality control.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Central Limit Theorem
The Central Limit Theorem states that the distribution of sample means will approximate a normal distribution, regardless of the shape of the population distribution, as the sample size increases. This is a fundamental concept in statistical inference.
Standard Error
The standard error is a measure of the statistical accuracy of an estimate. It represents the standard deviation of the sampling distribution of a statistic (e.g., the sample mean). A smaller standard error indicates a more precise estimate.

Key Statistics

According to a 2023 report by Statista, the global manufacturing output is projected to reach $36.2 trillion by 2024.

Source: Statista (2023)

The global quality control market was valued at USD 22.8 billion in 2022 and is expected to grow at a CAGR of 6.5% from 2023 to 2030.

Source: Grand View Research (2023)

Examples

Six Sigma Implementation at Motorola

Motorola famously used Six Sigma methodologies, heavily reliant on statistical process control and hypothesis testing, to reduce defects in their manufacturing processes in the 1980s, leading to significant cost savings and improved quality.

Frequently Asked Questions

What if the population standard deviation is unknown?

If the population standard deviation is unknown, you would use the sample standard deviation (s) to estimate it and use the t-distribution instead of the z-distribution. The t-distribution accounts for the added uncertainty due to estimating the standard deviation.

Topics Covered

StatisticsOperations ManagementEconomicsProbability DistributionsStatistical InferenceQuality Control