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with the collection, presentation, analysis & interpretation of data for the purpose of decisionmaking and problem-solving. Statistics is a critical skill in quality improvement as statistical techniques can be used to describe and to understand variability.

Population vs Sample

Population

the entire set of measurements of interest Population Mean Variance Standard Deviation

Parameters vs Statistics

Parameter

Sample

a subset of data from the population

Statistic

x s2 s

Parameters

numerical measures of a population

Statistics

numerical measures of a sample Sample

2010 LC Tang. All rights reserved 2010 LC Tang. All rights reserved

= Sample Mean

= Population Mean

Types of Data

Descriptive Orientation "Gappiness"

Discrete

(obtained by counting)

s = Sample Standard

Deviation

Level of Measurement

Nominal

(grouping)

Response

(dependant variable)

Predictor

(independant variable)

Continuous

(obtained by measuring)

Ordinal

(grouping & ordering)

Interval

(measured vs scale)

Statistics

estimate

Parameters

Ratio

(measured vs absolute)

Descriptive Orientation

Whether a variable is to be described or be described by other variables.

Response or Dependent Variable

variable under investigation is to be described in terms of other variables

Descriptive Orientation

KPIV

Y=

KPOV

f (X)

variable is used in conjunction with other variables to describe describe a given response variable

Whats In A Name?

X Independent Variable Y Dependent Variable

Whether there are gaps between successively observed values of a variable.

Discrete Variable

gaps exist between observations obtained by counting Values can take on only a particular set of numerical observations. This set is often evenly spaced. Examples : Stock Prices: 34 7/8 Number of soft errors on a disk Supreme Court votes: 6 to 3

Statistics Systems Engineering Quality Engineering Control Engineering Process Engineering Six Sigma

Continuous Variable

no gaps exist between observations obtained by measuring Examples : Baking Temperature: 100 +/- 5 degree celcius Pressure : 35 Psi

Level of Measurement

Deals with preciseness of measurement of the variable.

Nominal Variable

values assumed by a variable indicate different categories

Ordinal Variable

allows not only grouping but also ordering of categories

Interval Variable

meaningful measure of the distance between categories

an interval variable that has a scale with a true zero

2010 LC Tang. All rights reserved 2010 LC Tang. All rights reserved

Level of Measurement

Nominal Variable - Categorical & Independent Relative Size

Application form List of Field Reps Select one from each group Nationality Access to a digital camera Without access to a digital camera Fred W. Bill S. John D. Sam C.

Level of Measurement

Ordinal Variable - Categorical but Orderable

Example 1: Pareto Chart - Paint Adhesion Test

Order of importance

Question:How would you rate our service? Excellent Very Good Good Fair Poor

Marital status

Bob T. Jim C.

Occupation

Joe W. Diane A.

Pre pa

rati on Prim e T yp r e Pai n Typ t e App lica tion Hum idity Op era tor

Ordinal Scale

Level of Measurement

Interval (relative) Scale:

(no absolute zero)

1. Displaced Scale

50 40 30 20 10 0

Objectives

The Primary Objective of Statistics is to Learn from Data

Ratio Scale

(absolute zero exists)

2. Dial Gage 1. Ruler

100 90 80 70 60 50 40 30 20 10 0

Gage block

0.10 0 0.20

3. Relative Velocity

Tools of Statistics: data reduction Descriptive Statistics inferential measurement Inferential Statistics identification of relationships Regression, ANOVA

2010 LC Tang. All rights reserved 2010 LC Tang. All rights reserved

Statistics An Overview

Statistics

Descriptive Statistics

Graphical Presentations

Charts Tables

Descriptive Statistics comprises those methods concerned with collecting and describing a set of data so as to yield meaning information Inferential Statistics comprises those methods concerned with the analysis of a subset of data leading to predictions or inferences about the entire set of data

Inferential Statistics

Parameter Estimation

Point Estimate Interval Estimate

Numerical Measures

Location Dispersion Shape

Hypothesis Testing

Parametric Methods Nonparametric Methods

Descriptive Statistics

Descriptive Statistics

Graphical Presentations

Charts Dot Plot Box Plot Histogram Stem & Leaf Diagram Bar Chart Trend Chart Tables Location Mean Median Mode Quartiles

Numerical Measures

Describes the characteristics of the data set.

Numerical Measures

Dispersion Range Standard Deviation Variance Interquartile Range Shape Skewness Kurtosis

Frequency Distribution

Key numerical measures: measures of location (central tendency) measures of dispersion (variation) measures of shape (distribution)

Measures of Location

Mean Median Mode Quartiles

Mean

If the observations in a sample of size n are x1, x2, . . . , xn, then the sample mean is n x1 + x 2 + L + x n i=1 x i = x = n n The mean is the most common measure of location or center of the data.

Mean

The pull strength (in gf) of 10 gold bonding wires are 16.85 16.40 17.21 16.35 16.52 17.04 16.96 17.15 16.59 16.57 The sample mean pull strength for the 10 observations is

Mean

The sample mean x represents the average value of all observations in the sample. For a finite number of observations N, the population mean (denoted by ) may be determined by

x =

i =1

xi

n 167.64 = = 16.764 gf 10

i =1

xi

Mean

During Operation Desert Storm in 1991, USAF F-117A pilots flew 1270 combat sorties for a total of 6905 hours. Hence, the mean duration of a F-117A mission during this operation was

Median

Let x (1), x(2), . . . , x(n) denote a sample arranged in increasing order of magnitude, then the sample median is defined as if n is odd x ([ n +1] / 2 ) ~ = x x ( n / 2 ) + x ([ n / 2 ]+1) if n is even 2 The advantage of the median is that it is not influenced very much by extreme values.

i =1

xi

Median

If the sample observations are

1 3 4 2 7 8 6

Median

Just as the sample median x is the middle value in a sample, there is a middle value in the population. ~ The population median is that value at which half the population lies below it and half lies above.

The sample mean and median are 4.4 and 4 respectively. Both quantities give a reasonable measure of the central tendency of the data. If the last observation is changed so that the data are

1 3 4 2 7 8 2450

The sample mean is 353.6 while the sample median remains unchanged.

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Mode

The mode is the observation that occurs most frequently in the sample. The mode may be unique, or there may be more than 1 mode. Sometimes, the mode may not exist.

If the sample observations are 3 6 9 3 5 8 3 4 6 3 1 The sample mode is 3, since it occurs four times.

Mode

10

If the sample observations are 3 6 9 3 5 8 3 4 6 3 1 10 6 2 5 6 The sample modes are at 3 and 6, since they both occur four times. If the sample observations are 1 3 4 2 7 6 8 The sample mode does not exist.

Quartiles

When an ordered set of data is divided into four equal parts, the division points are called quartiles.

The first or lower quartile Q1 is a value that has approximately 25% of the observations below in value. The second quartile Q2 is a value that has approximately 50% of the observations below in value. It is also called the median. The third or upper quartile Q3 is a value that has approximately 75% of the observations below in value.

Quartiles

Twenty ordered observations on the times to failure (in hours) of electrical insulation material are shown below.

204 228 252 300 324 444 624 720 816 1176 1296 1392 1488 1512 2520 2856 3192 3528 912 3710

Q1 ~ x Q3

(324 + 444 )

Measures of Dispersion

Range Variance Standard Deviation Inter-Quartile Range

Range

The sample range is defined as the difference between the largest and the smallest sample observations, i.e. r = x(max) x(min) The mean is the simplest measure of dispersion or variation of the data. However, it ignores all the information in the sample between the smallest and the largest observations.

Range

Consider the two samples 1, 3, 5, 8, 9 and 1, 5, 5, 5, 9. Both have the same range (r=8). However, in the second sample there is variability only in the two extreme values, while in the first sample the middle values vary considerably. When the sample is small (n10), the information loss associated with the range is not too serious.

If x1, x2, . . . , xn is a sample of n observations, then the sample variance is

(x

n i =1

x) n 1

i

The sample standard deviation is the positive square root of the sample variance, i.e.

s =

(x

n

i x) i =1 n 1

The sample variance and the sample standard deviation are the most important measures of dispersion. The units of measurement for the sample variance are the square of the original units of the variable. The units of measurement for the sample standard deviation are the original units of the variable. A smaller value of s (and s) implies less variability.

For the two samples quoted earlier Sample A : 1, 3, 5, 8, 9 Sample B : 1, 5, 5, 5, 9

Range Inter-Quartile Range Variance Standard Deviation Sample A 8 5 11.20 3.35 Sample B 8 0 8.00 2.83

Computation of Variance

Method 1 :

2 i =1 (x i x ) n

i 1 2 3 4 5 6 xi

xi x

s2

Method 2 :

(x i x )2

3364 400 3249 64 289 144 2 (x i x )= 7510 7510 (6 - 1) = 1502 psi

n 1

s2

Observations :

n i =1

x i2

( x )

n i =1 i

n 1

s2 =

i

1 2 3 4 5 6

Analogous to the sample variance s, there is a measure of variability in the population - the population variance . The population standard deviation is the positive square root of the population variance. For finite population, comprising N values,

xi

90 128 205 140 165 160

xi

8,100 16,384 42,025 19,600 27,225 25,600

s2 =

i =1 x i2

n

( x )

n i =1 i

n 1

138,934

(888)2

6

6 1 7510 5

xi = 888 xi =138,934

= 1502 psi 2

(x

N i =1

Inter-Quartile Range

The inter-quartile range is another measure of dispersion. IQR = Q3 - Q1 The inter-quartile range is less sensitive to extreme values in a sample than the range. For the two samples (1, 3, 5, 8, 9 and 1, 5, 5, 5, 9), their inter-quartile ranges are 5 and 0 respectively.

Measures of Shape

Skewness Kurtosis

Skewness

The degree of asymmetry of a distribution around its mean is referred to as its skewness.

Positive skewness implies a distribution with an asymmetric tail extending towards higher values. Sometimes referred to as right-handed skew. Negative skewness implies a distribution with an asymmetric tail extending towards lower values. Sometimes referred to as left-handed skew.

Skewness

Skewness

If the data are symmetric, the mean and median will coincide. If the data is unimodal, then the mean, median and mode will all coincide. If the data are skewed, the mean, median and mode will not coincide. For right-handed skewness : mode < median < mean For left-handed skewness : mode > median > mean

Kurtosis

Kurtosis characterizes the relative peakedness or flatness of a distribution compared to a normal (mesokurtic) distribution. Positive kurtosis indicates a relatively peaked (leptokurtic) distribution compared to the normal distribution. Negative kurtosis indicates a relatively flat (platykurtic) distribution compared to the normal distribution. Kurtosis is relevant only for symmetrical distributions.

Kurtosis

(x x )

n i =1 i

Skewness =

(n1)(n2)

s3

Kurtosis

Numerical Measure

Mean Median Mode Quartile Range Variance Standard Deviation Inter-Quartile Range set, 1) Skewness Kurtosis

Stat Basic Statistics Display Descriptive Statistics

produces statistics for each column of data (or subsets within a column) and displays them in the Session Window and optionally in a graph the user has no control over which statistics are computed/displayed

=AVERAGE(data set) =MEDIAN(data set) =MODE(data set) =QUARTILE(data set, quartile) =MAX(data set) MIN(data set) =VAR(data set) =STDEV(data set) =QUARTILE(data set, 3) QUARTILE(data =SKEW(data set) =KURT(data set)

descriptive statistics for each column (or subsets within a column) are displayed in adjacent columns within the Worksheet the user can select which statistics are to be computed/displayed, but has no control over the order in which they are displayed

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Example 1

C1 of Basic Statistics.MTW contains the measurements of a certain quality characteristic for 500 productions units. Determine the appropriate numerical measures.

Example 1

Stat Basic Statistics Store Descriptive Statistics

Example 1

Example 1

Stat Basic Statistics Display Descriptive Statistics

It would seem that the data set is somewhat symmetrical about the mean (since skewness 0), but with a flatter distribution than the normal distribution.

Example 1

Graphical Presentations

Visual interpretation the the data set. Common graphical tools to illustrate a data set: Dot Plot Box Plot Frequency Distribution Histogram Stem & Leaf Diagram

Descriptive Statistics

Variable: Dist-1

Anderson-Darling Normality Test A-Squared: P-Value: Mean StDev Variance Skewness Kurtosis N Minimum 1st Quartile Median 3rd Quartile Maximum 97.154

80 90 100 110 120

27.108 0.000 100.000 32.385 1048.78 7.16E-03 -1.63184 500 41.771 68.695 104.202 130.809 162.821 102.846 34.527 117.663

What we assumed

45

65

85

105

125

145

165

95% Confidence Interval for Mu 95% Confidence Interval for Sigma 30.494 95% Confidence Interval for Median

82.784

The box displays

the lower quartile (Q1) the median (Q2) the upper quartile (Q3)

Maximum

1. Arrange the data set in ascending order. 2. Determine the minimum and maximum, the lower and upper quartiles, the median, and Tukeys outliers. 3. Draw a box that extends from the lower quartile to the upper quartile; the median is a line drawn through the box.

Q3 Median

the minimum the maximum

Q1

4. Draw lines (or whiskers) that extend from the ends of the box a) from Q1 to Max{Minimum, Q1 - 1.5 IQR} b) from Q3 to Min{Maximum, Q3 + 1.5 IQR}

Minimum

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5. Outliers are represented by appropriate symbols a) - mild or possible outliers b) - severe or extreme outliers

Histogram

The histogram, a graphical presentation of the frequency distribution, provides a visual impression of the shape of the distribution of measurements. X-axis Y-axis : : measurement scale frequency (or relative frequency) scale

Histogram

Frequency, f(x)

a) Bins = b) Bins = 5 9 Width = 40 Width = 20 Width = 10

a) 40

30 20 10 0

c) Bins = 18

b) 25

Frequency, f(x) 20 15 10 5 0 80

50

90

130

170

210

250

290

Compressive Strength, x

Frequency, f(x)

Area of each class intervals rectangle is proportional to the frequency for that class interval.

c) 16

12 8 4 0

100 120 140 160 180 200 220 240 260 280 Compressive Strength, x

65

85

105

125

145

165

185

205

225

245

Compressive Strength, x

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