- A transportation company spends over a billion dollars a year on fuel. Even a 1% savings in fuel consumption can save tens of millions of dollars.
- They have invested in various fuel conservation technologies, and desired to know how effective these technologies were in saving fuel.
- Isolating the effects of the technology is difficult, as there are a myriad of factors in play.
- We started with historical trip data, with dozens of possible causal factors. To help us get more precise measurements of the effect of the technology, we designed controlled experiments, where we could tightly control the parameters of the analysis, creating cleaner data.
- We also conducted a meta-analysis of prior studies, and to account for uncertainty in estimates, created a Monte Carlo simulation to understand a range of possible outcomes, should they more fully deploy the technology.
- We quantified a specific percent savings attributed to the fuel-saving technology alone, with an associated confidence range.
- In our financial analysis, the results suggested that, should they deploy the technology more fully, they would save slightly over $100 million in the first year.