1.

Project Objective

The objective of the report is to explore the Cold Storage data set in R and generate
insights about thedata set. This exploration report will consists of the following:

Importing the dataset in R

Understanding the structure of dataset

Graphical exploration

Descriptive statistics

Insights from the dataset

2.

About the Cold Storage

Cold Storage started its operations in Jan 2016. They are in the business of
storing Pasteurized FreshWhole or Skimmed Milk, Sweet Cream, Flavored Milk Drinks.

3.

Assumptions

Assuming that there is no change of texture, body appearance, separation of fats the
optimal temperature tobe maintained is between 2 deg - 4 deg C.

4.

Step by step approach1.

Environment Set up and Data Import

Install necessary Packages and Invoke Libraries

Use this section to install necessary packages and invoke associated libraries. Having all
thepackages at the same places increases code readability2.

Set up working Directory

Setting a working directory on starting of the R session makes importing and exporting
data filesand code files easier. Basically, working directory is the location/ folder on the
PC where you havethe data, codes etc. related to the project.

Source code to setup the working directory

** Please change the working directory as per your filename.3.

Import and Read the Dataset

The given dataset is in .csv format. Hence, the command ‘read.csv’ is used for importing
the file.
Source code to read the file in the directory
5.
Solving the Problem 1
1.

Find mean cold storage temperature for summer, winter and Rainy
Season?
Source code to calculate the mean of the different seasons.
Answer:2.

Find overall mean for the full year?

Source code to calculate the mean of the different seasons.
A n s w e r : 3.

Find Standard Deviation for the full year?

Source code to find the Standard Deviation.
A n s w e r : 4.

Assume Normal distribution, what is the probability of temperature having

fallen below 2degree C?
Source code to find the Standard Deviation.
Answer:5.

Assume Normal distribution, what is the probability of temperature having

gone above 4 degreeC?
Source code to find the Standard Deviation.Answer:
6.

What will be the penalty for the AMC Company?

As10% AMC is been charged by the company above 2.5% and less than 5%

Need to calculate the probability score which is less than 2.5 and which is less than 5%

Less than 2.5 =

Less than 5% =

Probability score for 10% AMC charges = Less than 5% - Less than 2.5%

As there is negative value there is no charges.

Hence now we need to calculate the probability which is more than 5%

Probability for more than 5%

Hence the AMC charges will be

Let the AMC annual charges be X

Than the penalty paid would be 0.25 x(0.9999691) x X

6.

State the Hypothesis do the calculation using the Z test.

Summary

The Z value of the Sample test is 0.8142 is less than Critical Alpha Value = 1.281 hence
we are unable toreject the null hypothesis.

Since the PValue is greater than the Level of Significance (10%), we are unable to reject
the Null hypothesis.
Hence there is no action corrective Action required in the cold storage.
7.

State the Hypothesis do the calculation using the T test.

Summary
As the T value (2.593) is more than the Alpha value (1.281) than the Null Hypothesis is
rejected.
8.

Inference after doing both the Test.

One-Sample Z-TestProblem

The Supervisor feels that at 3.9 deg C as upper acceptable temperature range and at
alpha = 0.1 there is need forsome corrective action in the Cold Storage Plant or is it
that the problem is from procurement side from where ColdStorage is getting the Dairy
Products.
Data collection
The data of the Last 35 days are taken for the month of Feb- March
Testing the null hypothesis

As a safety measure, the Supervisor has been vigilant to maintain the temperature below
3.9 deg C.
Statistical hypotheses
Either μ is equal to 3.9 hours or it is more than 3.9. You can state these alte
rnatives with two hypotheses:

The null hypothesis (H0): μ is equal to 3.9 degree

.

The alternative hypothesis (H1): μ is

greater than 3.9 degree.

Population Standard Deviation of the entire year is taken 0.508

Making a decision
To make a decision, choose the significance level, α (alpha), before the test:• If P is less
than or equal to α, reject H0.• If P is greater than α, fail to reject H0. (Technically, you
never accept H0. You simply fail to reject it.)

A typical value for α is 0.10, but you can choose higher or lower values depending on the
sensitivity required for the
test and the consequences of incorrectly re
jecting the null hypothesis. Assuming an α
-level of 0.10 for the data, notenough evidence is accept to H0. P (0.814) is less
than α
, hence we are unable to reject the Null Hypothesis. Also, theZ value of the Sample test is
0.8142 is less than Critical Alpha Value = 1.281 hence we are unable to reject the
nullhypothesis.

As we are unable to reject the null hypothesis we have come to the

conclusion that there is no correctiveaction required for the cold storage
and problem is from procurement side from where Cold Storage isgetting
the Dairy Products.Z testProblem
The Supervisor feels that at 3.9 deg C as upper acceptable temperature range and at
alpha = 0.1 there is need forsome corrective action in the Cold Storage Plant or is it
that the problem is from procurement side from where ColdStorage is getting the Dairy
Products.
Data collection
The data of the Last 35 days are taken for the month of Feb- March
Testing the null hypothesis

As a safety measure, the Supervisor has been vigilant to maintain the temperature below
3.9 deg C.
Statistical hypotheses
 Trusted by over 1 million members
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Either μ is equal to 3.9 hours or it is more than 3.9. You can state these al
ternatives with two hypotheses:

The null hypothesis (H0): μ is equal to 3.9 degree

.

The alternative hypothesis (H1): μ is greater than 3.9 degree

.

Standard Deviation of 35 samples is taken as 0.1597

Making a decision
To make a decision, choose the significance level, α (alpha), before the test:• If P is less
than or equal to α, reject
H0.
• If P is greater than α, fail to reject H0. (Technically, you never accept H0. You simply
fail to reject it.)

A typical value for α is 0.10, but you can choose higher or lower values depending on the
sensitivity required for the
test and the conseque
nces of incorrectly rejecting the null hypothesis. Assuming an α
-level of 0.10 for the data,enough evidence is available to reject H0. P (2.59
) is greater than α
.

As the Null hypothesis is rejected we have come to the conclusion that there
is a corrective actionrequired for the cold storage.