A mining company has a policy to replace the lubricating oil of its fleet of machines when the oil TAN (Total Acid Number) value reaches a critical level. The company is currently using Brand A. Another supplier claimed that its brand (Brand B) has a longer operating life (Oil-Life-Before-Drain).
This example presents a Life Data Analysis approach to compare the lubricating oil datasets from the 2 different suppliers. Given the datasets, we determine whether the difference between the 2 populations is statistically significant. If there is a significant difference, how to access the financial benefits for switching supplier?