TO: Lin Gerard, Chief Operating Officer, Automotive Parts Corporation
CC: Aileen Kitts , Chief Financial Officer, Automotive Parts Corporation
From: Dante Andrews, Automotive Parts Corporation
Date: March 26, 2019
Subject: Statistical Analysis
The question asked was which vendor should the facility choose from to supply the
manufacturing facility with machines that would produce shafts at ideally 2.5 inches.
Creating a normal distribution chart I found that Best Machinery would produce the specs
closest to our ideal and so Best Machinery should be chosen.
I was given the task of finding which vendor would supply us with shafts that would
closely match our ideal of 2.5 inches. Given that Ace Machinery produces shafts with a
mean 2.48 and variance 0.001, and Best Machinery produces shafts with a mean 2.51 and
variance 0.002, I set up both in a normal distribution chart and compared them to each
other. We know that Best Machinery deviates less from the ideal of 2.5 inches less than
compared to Ace Machinery. My recommendation is to choose Best Machinery.
Given the task of choosing a vendor, it is my personal recommendation that we go with
Addendum 1: Statistical Calculations
Given that Ace Machinery produces shafts with a mean 2.48 and variance 0.001 the
standard deviation is .815.
Best Machinery produces shafts with a mean 2.51 and variance 0.002 and the standard
deviation is .725
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