Business Statistics

Submitted to:
Prof. Sumeet Kaur

Submitted by:
Kirty Verma (221065) Mameet Singh (221069) Mridvika Kwatra (221071) Paul Mathews (221087) Rahul John(221107)

Case Overview
Formed in 1985, In-Process Technology performed dismally until in 1992, when it was restructured and renamed as Thermatrix. By 1997 through rigorous R&D the company created a market space for itself by proving effective and cheap measure for treatment of waste. In 2002, the company was acquired by Linde AG. Presently thermatrix offer s a wide range of flameless thermal oxidizers and has a capability of providing stand-along emission devices in a variety of ways. Thermatrix is located in Blue Bell, Pennsylvania, as a part of the Selas Fluid Processing Corporation. The company employees 90 people. Thermatrixs philosophy has been to give their customers more than what their competitors did without charging more. The company believes that it has grown because of its customer relationships, which include partnering, delivering a quality product on time, and listening to its customers needs.

Q1. Suppose company management wants to formally measure customer satisfaction at least once a year and develop a brief survey that includes the following 4 questions. 115 customers participated in the survey and the result is given in the following table. Analyse the data to estimate population response.
Question Yes No

In general, were deliveries on time? Were the contact people helpful and courteous?
Was pricing structure fair to your company? Would you recommend Thermatrix to other companies?

63 86
101 105

52 29
14 10

Solution
The response captured is in plain Yes or No. Hence the data is treated as a qualitative data. All the response in the favour of Thermatrix is taken as X for the calculation of p, where p is the proportion of the sample or the population having a particular trait of interest. Total no. of sample is indicated as n and n = 115. 95% and 99% Confidence Interval for population mean will be constructed. Formula used: p +(-) Z*[(p*q)/n] (1/2) Where, q = (1-p), Z at 95% = 1.96 and Z at 99% = 2.575 Confidence Interval for 95% Question In general, were deliveries on time? Were the contact people helpful and courteous? Was pricing structure fair to your company? Would you recommend Thermatrix to other companies? Lower Limit 0.457 0.6688 0.8182 0.8615 Upper Limit 0.639 0.8272 0.9378 0.9645

Confidence Interval for 99% Lower Limit 0.429 0.6439 0.7995 0.8453 Upper Limit 0.667 0.8503 0.9565 0.9807

Question In general, were deliveries on time? Were the contact people helpful and courteous? Was pricing structure fair to your company? Would you recommend Thermatrix to other companies?

Analysis The difference in the end points for 95% and 99% confidence intervals is approximately 2-3%. This is not much, so we will consider CI for 95%.. Were deliveries on time: The end points of the confidence interval are 0.457 and 0.639. We can conclude with 95% confidence that greater than 45.7 % and less than 63.9% of the population thinks that the deliveries were on time. This is a bit low, considering the fact that the company gives customer service a lot of importance.

Were the contact people helpful ad courteous: The end points of the confidence interval are 0.6688 and 0.8272. We can conclude with 95% confidence that greater than 66.88 % and less than 82.72% people contacted felt that the people at Thermatrix were helpful and courteous. This is high and the company is quite successful in providing a good customer care. Was pricing structure fair to your company: The end points of the confidence interval are 0.8182 and 0.9378. We can conclude with 95% confidence that greater than 81.82 % and less than 93.78 % people found the pricing structure fair, this implies that the customers are very much satisfied with the pricing structure. Would you recommend Thermatrix to others: The end points of the confidence interval are 0.8615 and 0.9645. We can conclude with 95% confidence that greater than 86.15 % and less than 96.45% customers would recommend Thermatrix to others. This shows the extent of customer satisfaction, which is very high.

Q2. Thermatrix officers want to measure the employee satisfaction and randomly sample 9 employees to participate in the survey. As a part of the survey the employees are asked to respond to questions on a scale of 1 to 5, 1 being low satisfaction and 5 is high satisfaction. Assume the data are at least interval and that the overall responses on questions are normally distributed. Analyse the results.

Question
Are you treated fairly as an employee.

Mean
3.79

Std. Dev
0.86 1.27

Has the company given you enough training you need to do the 2.74 job adequately.

Does the management consider your input in making decisions about production.
Is your physical work environment acceptable. Is the compensation for your work adequate and fair.

4.18
3.34 3.95

0.63
0.81 0.21

Solution
N: Total number of employees: 90 N: Employees selected for the survey: 9 Standard deviation is given for the sample instead of population, and the responses are normally distributed. Hence we will use Students t-distribution. Degree of freedom: n-1 = 8. Since n/N = 0.1 > 5%, therefore we need to use Correction Factor (CF). Correction Factor: (N-n)/(N-1) Formula used: Mean +(-) t*s/n(1/2)* CF t (95%) = 2.306 t (99%) = 2.335 On calculation, we found that the difference in end points calculated for 95% and 99% is very low. Hence we will only consider for 95% level of significance.

Confidence Interval for 95% Level of Significance Question Are you treated fairly as an employee. Has the company given you enough training you need to do the job adequately. Does the management consider your input in making decisions about production. Is your physical work environment acceptable. Is the compensation for your work adequate and fair. Lower Limit 3.159 1.809 3.718 2.746 3.796 Upper Limit 4.421 3.671 4.642 3.934 4.104

Analysis Are employees treated fairly: The end points of the confidence interval are 3.159 and 4.421. Population mean lies in the interval. We can conclude that we can be reasonably sure that the responses of 95% of the employees would lie in the interval. This has a narrow interval, and the company scores high on providing fair treatment to the employees.

Adequate training for job: The end points of the confidence interval are 1.809 and 3.671. Population mean lies in the interval. This area has witnessed a high dispersion, i.e. the employees have given varied response. The company might want to look into this area and try to find the reason and if possible improve. Consideration of input in decision making for production: The end points of the confidence interval are 3.718 and 4.642. We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. This again is a good score and company values employees input in decision making process. Is physical work environment acceptable: The end points of the confidence interval are 2.746 and 3.934. We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. The company scored above average in this front, but can look to improve the score in future. Is compensation adequate and fair: The end points of the confidence interval are 3.796 and 4.104. We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. The interval is very narrow and with reasonably high score.

Conclusion
Strengths
Thermatrix fairs well in providing a good price structure. Customers are satisfied with the customer executives and find them courteous and helpful. Thermatrix is highly recommended by the customers. The company treat its employees fairly and employees are highly satisfied. Thermatrix seriously consider its employees input and provides them with fair compensation. The company has not scored high in deliveries on time. There is a scope of improvement. Thermatrix has not scored high in providing adequate job training. The management can consider a proper action and try to improve on that front.

Weaknesses

Thank You