A heavy equipment manufacturer introduces new models of their backhoes and forklifts, and sells several of these machines

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A heavy equipment manufacturer introduces new models of their backhoes and forklifts, and sells several of these machines. A few months later they discover a problem. An unacceptably high number of their customers needed to seek repairs of the machines’ hydraulic systems within the first few weeks of operation.

The company’s engineers go to work on this problem, and soon think that they have found a solution. They believe that an additive poured into the hydraulic oil may greatly extend the number of hours these machines can be used before repairs become necessary. A few tests conducted under laboratory conditions indicate that this solution shows promise, but “real world” customer experience is needed before they can be sure. Impressed by these preliminary results, the company’s management gives the research team the green light to test their theory using up to 20 newly manufactured machines that will be sold during the next few weeks.

It is your job to design the experiment by specifying the procedure the company should use. Be sure to use the appropriate vocabulary throughout your description.

• ? Clearly describe how you would design this experiment.

• ? Outline your design with a diagram.

• ? Explain and perform your randomization procedure, showing the resulting assignments.

• ? Indicate additional measures, if any, that you would take to eliminate potential sources of bias.

• ? Explain how you would decide whether the additive has solved the problem.