Statistics Project, Statistics case study
The certified letter was delivered about 4:00 PM to Andrew Wilson, CEO and principal owner of the Wilson Corporation. It was from the State Department of Environmental Services and it sent shivers down Andrew’s spine. In bold-faced type at the top of the letter was the message:
“Notice of Water Quality Violation – Wilson Corporation”
The letter went on to outline the situation. The state had performed tests at the outflow location from Wilson’s main processing plant and found problems with nitrates and pH levels. A hearing on the matter was scheduled on May, 2014 to outline the issues and to assess damages to be paid by the Wilson Corporation. In the meantime, all effluent from the plant was to be immediately halted.
Accompanying the letter was a computer disk file containing data from 95 water samples selected at the Wilson plant over a 3-week period. The file is labeled Wilson Water.
Andrew reached for his phone to make two calls. The first was to Randy Glover, his production scheduler. He told Randy the problem and indicated that he was to immediately halt production and to schedule an employee meeting at 8:00 the next morning.
The second call went to his statistical group. Andrew explained to them the essence of the letter and the action he was taking with regard to production. He wanted them to halt all other work and immediately perform an analysis on the sample data supplied by the state. Andrew wanted a comprehensive descriptive and inferential (confidence intervals & tests) analysis of the data, so he could prepare for the hearing with the state. Give me a report that discusses the data, and let’s get together next week to review your report? Be sure to incorporate into your report charts and statistical information you obtained using Microsoft Excel. Set up appropriate confidence interval estimates and summarize your findings in words. What should the company conclude about its current status on meeting the federal requirements? One the requirement is that the average pH level does not exceed 7.4. For the nitrates, the maximum allowable level is 3.0 milligrams per milliliter. Test these hypotheses at the 0.05 level of significance. Discuss your results in a memo to the company’s environmental relations manager.
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