Question

In: Finance

A quality characteristic of interest for a flour-bag-filling process is the weight of the flour in...

A quality characteristic of interest for a flour-bag-filling process is the weight of the flour in the individual bags. If the bags are under filled, the company may be in violation of the truth-in-labeling laws. In this example, the label weight on the package indicates that, on average, there are 10 pounds of flour in a bag. If the average amount of flour in a bag exceeds the label weight, the company is giving away product. Getting an exact amount of flour in a bag is problematic because of variation in the temperature and humidity inside the factory, and the extremely fast filling operation of the machine (approximately 150 bags a minute). The following table provides the weight in pounds of a sample of 70 bags produced in one hour by a single machine:
10.31 9.74 10.01 10.04 10.10 10.45 10.37 10.19 10.10 9.74
10.37 9.85 10.38 10.11 10.11 9.92 9.72 9.78 9.97 10.50
9.84 10.22 9.70 9.75 10.02 10.19 10.07 10.36 10.39 9.83
10.14 10.42 10.11 9.73 10.31 10.40 9.86 10.45 10.45 10.25
10.28 9.82 9.74 10.23 10.41 10.20 9.81 10.06 10.32 10.43
10.24 9.73 10.06 10.31 10.10 10.34 9.78 9.88 10.05 9.96
9.85 10.27 10.32 10.35 10.06 10.07 9.86 10.37 10.47 10.37
a) Compute the mean by using the function, =AVERAGE()
Compute the median using =MEDIAN()
Median
b) Compute the first and third quartiles, by using either =QUARTILE.INC() or =QUARTILE.EXC() for both the First and Third Quartiles
First Quartile
Third Quartile
c) Compute the range, interquartile range, variance, standard deviation, and coefficient of variation.
Range Use the functions, =MAX()-MIN()
Interquartile range
Variance Use the function =VAR.S()
Standard deviation Use the function =STDEV.S()
Coefficient of variation. Coefficient of variation is the standard deviation divided by the mean.
Note that coefficient of variation should be expressed in percentage

Solutions

Expert Solution

The question is solved using Excel as per the requirement. The excel sheet is attached as well.

a) Mean = 10.11

Median = 10.11

b) First Quartile = 9.86

Third Quartile = 10.34

c) Range = 0.80

Interquartile Range = 0.48

Variance = 0.06

Standard Deviation = 0.24

Coefficient of Variance = 2.40%


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