Statistical Techniques Analysis Fgcsolutions - PDF Handout

Statistical Techniques
Analysis
Presented by
Frank G. Calucin
ISO Management Consultant & Trainer
Objectives
• Provide an understanding on the need and application of
statistical techniques based on the requirements of the
ISO 9001: 2008 standard.
• Provide knowledge on the basics of statistics, its use,
benefits and application to an organization
• Provide hands‐on application of selected techniques in
statistical application.
1
Requirements
DAY 1:
Simple Calculator
Graphing paper (if available)
Ruler
DAY 2:
Computer with Microsoft Office Excel Program
PASS Requirements:
Complete the exercises
Submission of Assignment
QMS Requirements for Analysis
Brief History:
ISO 9001: 2004, Clause 4.20, Statistical Techniques
• The organization will ESTABLISH PROCEDURES that
implement and CONTROL the USE of STATISTICAL
TECHNIQUES for the quality system, which means
statistical techniques needed by the organization is
required to be established to verify the process
capabilities and product characteristics
• It also states that procedure should explain how the
statistical techniques will be applied and that
monitoring and control of these techniques must be
documented
2
Brief History: ISO 9001: 2000
• ISO 9001: 2000 does not have a separate clause element
for statistical techniques as compared to the 1994
version, which means documented procedure is no
longer required
• However, this requirement was incorporated in Clause 8,
Measurement, Analysis and Improvement, specifically,
clause 8.4 – Analysis of Data.
• ISO 9001: 2008, Clause 8.4 – Analysis of Data does not
have much change except for clause 8.4 b) and clause d)
In summary, the organization to comply with the minimum
requirement of ISO 9001: 2008 Clause 8.4, there should be
an evidence of implementation that analysis is done on the
following four items:
1. Customer Satisfaction
2. Conformity to Product Requirements
3. Characteristics and Trends of Processes/Products,
including Preventive Actions
4. Suppliers
3
Why R U Attending this Course?
• The standard does not specifically require for the
company to attend training like this.
• However, the standard does require that the
organization must DETERMINE, COLLECT AND ANALYZE
appropriate data.
• The standard also requires in Clause 6.2.2 that when
applicable, the organization must provide training to
achieve the necessary competence.
• The requirement in Clause 8.4, Analysis of Data tells us
that the users or employees who collects and analyzes
appropriate data must have the competence in statistical
analysis to comply with this requirement.
Data Analysis and
Customer Satisfaction
• Quality is defined as the satisfaction on the needs and
requirements of the customer
• Gauging on the customer satisfaction based on the
Product and Service provided by the organization, this
can only be determined through the determination of
which data to collect, its objectives and the appropriate
analysis.
4
Customer Satisfaction
• Clause 8.2.1, Customer Satisfaction, states that
organization must MONITOR the INFORMATION relating
to CUSTOMER PERCEPTION to determine whether the
organization HAS MET the customer requirements.
• As such, the organization must develop or establish a
system to collect data for a specific purpose and analyze
it to determine if the products/services provided to the
customer is indeed effective, which leads to the
requirement of Clause 8.5.1, Continual Improvement.
BASICS OF STATISTICS
(Statistics 101)
• STATISTICS – is defined as a branch of mathematics that
deals with the theory and method of collecting,
organizing, presenting, analyzing, and interpreting data.
• STATISTICAL DATA – is concerned about numerical data
such as sales, rejects, nonconformities, population, birth,
death, etc.
• DATA GATHERING – includes information gathered
through surveys, interviews and raw data from records
such as purchase and consumption of materials, etc.
5
Two Main Division of Statistics
• DESCRIPTIVE STATISTICS – refers to the collection,
organization, presentation, computation and
interpretation of data in order to describe the samples
under investigation. In simplest definition, this type of
statistics describe what the data will look like
• INFERENTIAL STATISTICS – is a statistical tool that seeks
to give information or inferences or implications
pertaining to the populations by studying its
representatives. In short, this is about sampling based on
a given population
Population and Samples
We use the samples as estimate of Population Parameter.
The quality of all statistical analysis depends on the
quality of the sample data
Random Sampling: every unit in the
population has an equal chance to
be chosen
Sample
Population
A random sample should represent
the population well, so sample
statistics from a random sample
should provide reasonable
estimates of population parameters
6
Population and Samples
• POPULATION – defined as the totality of objects,
individuals or reactions, which have common observed
characteristics. Examples of population are trainees,
instructors, teachers, students, employees of the
company, products and services offered, etc.
• SAMPLING METHOD – defined as getting a small but
representative cross section of the population. This
representative part is called the SAMPLE.
This will be discussed much later on
VARIABLES
• Variable is one of the basic concepts in statistics, which is
referred to observed characteristics such as weight,
height, sex, age, IQ, etc.
• Variables are considered as raw data for statistical
analysis usually expressed as X, Y, Z, etc.
7
Two Types of Variables
• Variable is one of the basic concepts in statistics, which is
referred to observed characteristics such as weight,
height, sex, age, IQ, etc.
• Variables are considered as raw data for statistical
analysis usually expressed as X, Y, Z, etc.
VARIABLES
• Discrete Variable – variables obtained through
COUNTING like the number of deaths, births, students,
trainees, instructors, etc. at any given time
• Continuous Variable – values CAN NEVER BE EXACT no
matter what we do in getting the measurement like age,
height, weight, temperature, volume, areas, time, etc.,
for the basic reason that this type of variable can assume
any value on an interval of real numbers.
8
Two Groups of Variables
• Independent Variable – used as predictor if the objective
is to predict the value of one variable
• Dependent Variable – this is the predicted value
To illustrate, if we want to predict the student’s
academic achievement for a certain course, we may
have to analyze the different factors such as gender,
intelligence, study habits, interest, attitude, etc.
• These variables (factors) are what we call as
INDEPENDENT VARIABLE. On the other hand, the
DEPENDENT VARIABLE is the student’s academic
achievement in mathematics.
Two Types of Data
• QUALITATIVE DATA – are categorical data, which take
the form of categories or attributes such as gender,
course, race, religion, etc.
• QUANTITATIVE DATA – are numerical data obtained
from measurements like height, weight, age, score,
temperature, etc.
9
Measurement of Scales
• Quantitative Data can be converted to quantitative
through a process called MEASUREMENTS. By
measurements, numbers are utilized to code objects that
then can be treated statistically.
• FOUR TYPES OF MASUREMENTS
1. Nominal Measurement
2. Ordinal Measurement
3. Interval Measurement
4. Ratio Measurement
Nominal Measurement
• Nominal Measurement – used for identification or
classification purpose
• Nominal Data – the numbers are simply labels. You can
count but not order or measure nominal data
Example: a group of students are classified according
to courses such 1) engineering; 2) information
technology; 3) accounting; 4) nursing.
The above does not have any meaning attached to the
magnitudes of numbers assigned to the courses. The
numbers indicate as codes.
10
Ordinal Measurement
• Ordinal Measurement – this type of measurement give
the order of ranks or classes items or objects.
• Ordinal Data ‐ ordered but differences between values
are not important
Examples: 1st prize, 2nd prize, 3rd prize; 1) very good 2)
good 3) fair 4) poor 5) very poor
Interval Measurement
• Interval Measurement – numbers are assigned to the
items or objects to identify and rank the objects
Example: Jerry weighs 75 kilograms and George weighs
65 kilograms, the difference of 10 kilograms indicate
that Jerry is 10 kilograms heavier than George
11
Ratio Measurement
• Ratio Measurement – ratio of the numbers assigned in
the measurement
Example: Jerry is 50 years old and George is 25 years old,
then their age may be expressed in the ration of 2:1
Sampling Method
• As defined earlier, sampling is getting small but
representative cross section of a population.
• A representative sample of 100 is generally preferable as
compared to the total population of 1,000 to work on for
analysis.
12
Sample Size
To find the number of samples for a given population, the
following is the formula: n = N / 1 + Ne2
Where:
n = sample size
N = population size
e = margin of error
Sample Size
Example: Find the sample size the researcher wants to
include in his study if the population size of the students is
1,850 at 95% accuracy
Solution: Since 95% accuracy is to be evaluated, the
corresponding percentage margin of error is 5% or 0.05.
Applying the formula:
n = 1,850 / (1 + (1,850 x .052))
n = 329
13
Margin of Error
• The margin of error is a statistic expressing the amount
of random sampling error in a survey's results.
• The larger the margin of error, the less faith one should
have that the poll's reported results are close to the
"true" figures; that is, the figures for the whole
population.
Frequency Distribution
Basic Definitions
A FREQUENCY DISTRIBUTION TABLE lists categories of
scores along with their corresponding frequencies.
14
Basic Definitions
The FREQUENCY for a particular category or class is the
number of original scores that fall into that class.
Basic Definitions
The CLASSES or categories refer to the groupings of a
frequency table
15
Basic Definitions
The RANGE is the difference between the highest value and
the lowest value.
R = highest value – lowest value
In Excel Program
Highest Value = MAX Lowest Value = MIN
Basic Definitions
The CLASS WIDTH is the difference between two
consecutive lower class limits or class boundaries.
LL = Lower Class Limit
LU = Upper Class Limit
The difference between 16 and 25 is 9.
The Class Width between the two
consecutive lower class limit = 9
16
Basic Definitions
• The CLASS LIMITS are the
smallest or the largest numbers
that can actually belong to
different classes.
• Lower class limits are the
smallest numbers that can
actually belong to the different
classes.
• Upper class limits are the largest
numbers that can actually
belong to the different classes.
Basic Definitions
• CLASS MARKS – is the
midpoint of middle value of a
class interval. It is obtained by
finding the average of the
lower class limit and the
upper class limit.
• The CLASS MARK of the CLASS
LIMIT 16 to 24 is (16 + 24) / 2 =
20
17
Guidelines 4 Making FD
• There should be between 5 and 20 classes.
• The class width should be an odd number.
• The classes must be mutually exclusive (meaning that
a value cannot belong to two different classes at the
same time)
• The classes must be continuous (no gaps)
• The classes must be exhaustive (enough classes)
• The class must be equal in width
Procedure 4 Making FDT
• STEP 1: Determine the range.
R = Highest Value – Lowest Value
• STEP 2: Determine the tentative number of classes (k);
k = 1 + 3.322 log N
Always round – off
• Note: The number of classes should be between 5 and 20.
The actual number of classes may be affected by
convenience or other subjective factors
• STEP 3: Find the class size by dividing the range by the
number of classes. (Always round – off)
18
Procedure 4 Making FDT
• STEP 4: Write the classes or categories starting with the
lowest score. Stop when the class already includes the
highest score.
• STEP 5: Add the class width to the starting point to get the
second lower class limit. Add the class width to the
second lower class limit to get the third, and so on. List
the lower class limits in a vertical column and enter the
upper class limits, which can be easily identified at this
stage.
• STEP 6: Determine the frequency for each class by
referring to the tally columns and present the results in a
table.
EXERCISE
Based on Philippine National Police records, a total of 464
men died from crime related incident during the first week
of July 2010 in the Philippines. Here are the ages of 50
individuals randomly selected from that population.
Construct a frequency distribution table.
Note: The sample of 50 is for demonstration purposes only
19
EXERCISE
GET A PIECE OF PAPER TO MAKE YOUR FREQUENY TABLE
Class Tally Freq REL-F Cum.F CumF% MP
N=
EXERCISE
The following are the ages of these 50 men who died:
19 18 70 22 17
23 25 37 26 24
47 69 25 55 25
17 36 30 20 46
24 29 21 35 37
21 27 20 65 24
27 23 65 27 16
40 41 42 75 63
33 65 23 25 25
31 18 33 76 22
20
EXERCISE
Step 1: Find the highest and lowest value
Highest Value = 76 Lowest Value = 16
Step 2: Determine the Range
Range (R) = Highest Value – Lowest Value = 76 – 16 = 60
Step 3: Determine the tentative number of classes (k) using the
formula = K = 1 + 3. 322 log; N = total number of samples = 50
K = 1 + 3.322 log 50
= 1 + 3.322 (1.69897)
= 6.64 = 7
Note: Round off the result to the next integer if the decimal part
exceeds 0)
EXERCISE
Step 4: Find the class width (size) by dividing the range by
the number of classes. (Always round – off)
Class size = Range ÷ Number of Classes Î c = R ÷ k

c = 60 ÷ 7 = 8.57 = 9
21
EXERCISE
Step 5: Write the classes or categories starting with the lowest
score. Add the class width to the starting point to get the
second lower class limit. Add the class width to the second
lower class limit to get the third, and so on. List the lower
class limits in a vertical column as shown in the table
Class 1st Lower Limit = 16 (lowest value)
16 2nd Lower Limit = 16 + 9 = 25
25
34 Starting with the lowest lower limit
43 value of 16, add the class width 9 to get
52 the sum of 25, which will become the
61 next lower limit of 25.
70
EXERCISE
Step 5: continuation…For the lowest upper limit, subtract 1
from the class value of 9 to get 8, and then add this to the
corresponding lower limit, 16, which will give you 24, then
continue on until the class including the maximum value of 76
is reached as shown in the table
Class 1st Upper Limit = 9 – 1 = 8 + 16 = 24
16-24 2nd Upper Limit = 9 – 1 = 8 + 25 = 33
25-33 3rd Upper Limit = 9 – 1 = 8 + 34 = 42
34-42
4th Upper Limit = 9 – 1 = 8 + 43 = 51
43-51
52-60
5th Upper Limit = 9 – 1 = 8 + 52 = 60
61-69 6th Upper Limit = 9 – 1 = 8 + 61 = 69
70-78 7th Upper Limit = 9 – 1 = 8 + 70 = 78
22
EXERCISE
Step 6: Tally the data, write the numerical values for the
tallies in the frequency column and find the frequency. The
total number (N) of frequencies should add up to the samples
of 50
Class Tally Freq

16-24 ///// - ///// - ///// - /// 18
25-33 ///// - ///// - //// 14
34-42 ///// - // 7
43-51 // 2
52-60 / 1
61-69 ///// 5
70-78 /// 3
N= 50
EXERCISE
Step 7: Find the relative frequency. To compute for the relative
frequency, divide the frequency with the total number of
samples (N)
Class Tally Freq REL-F To get the Relative

16-24 ///// - ///// - ///// - /// 18 36%
Frequency of class 16 – 24:
25-33 ///// - ///// - //// 14 28%
34-42 ///// - // 7 14%
43-51 // 2 4%
= (Freq / N) x 100
52-60 / 1 2% = (18 / 50) x 100 = 36%
61-69 ///// 5 10%
70-78 /// 3 6%
N= 50 100%
23
EXERCISE
Step 8: Find the cumulative frequency. To compute for the
cumulative frequency, just add the frequencies next to the
other. This should add up to 50 when the class of 70 – 78 is
reached
Class Tally Freq REL-F Cum.F

16-24 ///// - ///// - ///// - /// 18 36% 18
25-33 ///// - ///// - //// 14 28% 32
To get the Cum. Freq. of
34-42 ///// - // 7 14% 39 class 25 – 33:
43-51 // 2 4% 41
52-60 / 1 2% 42 Class 25 – 33: 18 + 14 = 32
61-69 ///// 5 10% 47 Class 34 – 42: 32 + 7 = 39
70-78 /// 3 6% 50
N= 50 100%
EXERCISE
Step 9: Find the cumulative frequency percentages. To
compute for the cumulative frequency percentage, just add
the relative frequency next to the other. This should add to
100% when the class of 70 – 78 is reached
Class Tally Freq REL-F Cum.F CumF% To get the Cum. Freq. %
16-24 ///// - ///// - ///// - /// 18 36% 18 36% of class 25 – 33:
25-33 ///// - ///// - //// 14 28% 32 64%
Class 25‐33: 36 + 28 = 64
34-42 ///// - // 7 14% 39 78% Class 34 ‐42: 64 + 14 = 78
43-51 // 2 4% 41 82%
52-60 / 1 2% 42 84%
61-69 ///// 5 10% 47 94%
70-78 /// 3 6% 50 100%
N= 50 100%
24
EXERCISE
Step 10: Find the Class Marks of Midpoints of each classes. To
compute for the class mark (midpoint – used for constructing
frequency polygon graph), add the lower class limit and upper class
limit for each class category, and then divide it by 2.
Class Tally Freq REL-F Cum .F Cum F% MP
16-24 ///// - ///// - ///// - /// 18 36% 18 36% 20
25-33 ///// - ///// - //// 14 28% 32 64% 29
34-42 ///// - // 7 14% 39 78% 38
43-51 // 2 4% 41 82% 47
52-60 / 1 2% 42 84% 56
61-69 ///// 5 10% 47 94% 65
70-78 /// 3 6% 50 100% 74
N= 50 100%
To get the midpoint of class 16 – 24, add the lower class limit value
of 16 and the upper class limit value of 24, and then divide it by 2
MP Class 16 – 24 = 16 + 24 = 40/2 = 20
VISUALIZING THE DATA
The three most commonly used graphs in research are
1. The histogram
2. The frequency polygon
3. The cumulative frequency graph, or ogive (pronounced o‐
jive)
25
HISTOGRAM
The histogram is a graph that displays the data by using
vertical bars of various heights to represent the frequencies.
Example of Histogram as represented by the frequency
distribution we just presented
Number of Crime Deaths
18
18
16
Number of Occurrence
14
12 14
10
8
6 7
4 5
3
2 2 1
0
16-24 25-33 34-42 43-51 52-60 61-69 70-78
Age Brackets
FREQUENCY POLYGON
A frequency polygon is a graph that displays the data by using
lines that connect points plotted for frequencies at the
midpoint of classes. The frequencies represent the heights of
the midpoints.
Example of Frequency Polygon
Crime Deaths Statistics
40%
35% 36%
30%
28%
25%
20%
15 %
14%
10 % 10%
5% 6%
4%
2%
0%
20 29 38 47 56 65 74
Age Br a c k e t s
26
Cumulative Frequency Graph
Cumulative frequency graph or ogive is a graph that represents
the cumulative frequencies for the classes in a frequency
distribution
Example of Cumulative Frequency Graph (Ogive)
Cumulative Frequency of Crime Deaths
110 %
10 0 % 100%
94%
Frequency Percentage
90%
84%
80%
78% 82%
70%
64%
60%
50%
40%
36%
30%
20 29 38 47 56 65 74
Age Brackets
Interpretation
The graph indicates that ages from 16‐24 has the highest
number of fatalities at 36% as compared to least number of
casualties in the age bracket of 52~60 at 2%. The average age of
individuals killed was at 31.
Based on this analysis, it is most likely that men in age bracket
of 16‐24 indicates that younger individuals have now been
involved to crimes due to several probable factors such as
lifestyle, materialistic indulgence and poverty
27
INDIVIDUAL EXERCISE
Make sure that you have a graphing paper, ruler and
calculator
In a Human Resource behavioural study of employees who
smoke in a company, the researcher randomly sampled 40
employees who have smoked at least 5 cigarettes per day.
The following table shows the number of cigarette sticks
smoked by an individual. Determine the average number of
cigarettes smoked, the most number of cigarettes consumed
and the least number of sticks smoked. Present this in a
frequency distribution table and its corresponding graphical
representation in histogram, frequency polygon and
frequency cumulative graph.
INDIVIDUAL EXERCISE
The following is the number of cigarettes smoked of the
randomly sampled employees
10 6 13 14
22 17 15 12
11 18 27 22
13 15 16 18
8 16 12 11
8 14 25 7
13 25 16 12
9 22 9 8
12 15 5 19
11 11 19 9
28
Frequency Distribution Using
Microsoft Excel
19 18 70 22 17
Based on Philippine National
23 25 37 26 24
Police records, a total of 464 47 69 25 55 25
men died from crime related 17 36 30 20 46
incident during the first week 24 29 21 35 37
of July 2010 in the 21 27 20 65 24
27 23 65 27 16
Philippines. Here are the 40 41 42 75 63
ages of 50 individuals 33 65 23 25 25
randomly selected from that 31 18 33 76 22
population. Construct a
frequency distribution table.
FD Using Microsoft Excel
Step 1: Start with your Excel Program. Enter the following
data and create a tabular form similar to the following:
29
Maximum Value
Step 2‐1: Find the maximum value and minimum value from the raw
data. Starting with the maximum value, place the pointer next to
the MAX, cell B9, then click the “fx” function, and then search for
the function of MAX. This will be followed by “function argument”
Max Value – Function Argument
Step 2‐2: When the function argument appears as shown below,
highlight the age range from J2 to N11. The function argument will
show up in the box of “Number 1” the highlighted ranges of cells J2:N11
as shown below. Click OK. You will get 76
30
Minimum Value
Step 3‐1: Find the minimum value by placing the pointer next to the
MIN, cell B10, then click the “fx” function, and then search for the
function of MIN. This will be followed by “function argument”
Min Value – Function Argument
Step 3‐2: When the function argument appears as shown below,
highlight the age range from J2 to N11. The function argument will show
up in the box of “Number 1” the highlighted ranges of cells J2:N11 as
shown below. Click OK. You will get 16
31
Average Value ‐ MEAN
Step 4: Get the MEAN (average) doing the same process by placing the
pointer in cell B11, and then click the “fx” function AVERAGE. Value of
34.48 (round off to 34) will be obtained.
Total Number ‐ COUNT
Step 5: Determine the “n” by placing the pointer in cell B20, and then
click the “fx” function COUNT. Value of 50 will be obtained
32
RANGE
Step 6: Determine the Range (R) by placing the pointer in cell D9. Enter
the following formula in the formula bar: =B9‐B10 Î 76 – 16 = 60
Highest Value = 76 = cell B9 Lowest Value = 16 = cell B10
NUMBER OF CLASSES
Step 7‐1: Determine the tentative number of classes (k). Go to cell D10.
Click the fx function and select “LOG” and then click OK
33
NUMBER OF CLASSES
Step 7‐2: A function argument dialog will appear. Click the this symbol
at the end of number. Then this symbol will appear
Click the cell E20, then click the symbol below the X then click OK
NUMBER OF CLASSES
Step 7‐3: In the formula bar, add * to signify multiplication, then click
cell E21 with the value of 3.32
34
NUMBER OF CLASSES
Step 7‐3: Enclose the formula LOG(E20)*E21 with parenthesis then
type the “+”, and then click F9. You will get 6.64. Round off the value
of 6.64 to 7. Type 7 in cell E10
CLASS WIDTH
Step 8: Find the class width (size) by dividing the range by the number
of classes. You will get 8.57. Round this off to 9, and then type 9 to E11
35
LOWER LIMITS
Step 9‐1: Write the classes or categories starting with the 1st lower
limit (LL) in cell C13 by typing 16. For the 2nd lower limit, enter the
following formula as shown below =C13+$E$11 Î 25. The dollar sign
for E11 indicates that the value of 9 in E11 is constant. This will appear
when you press F4 after clicking E11. Then copy cell C14 and paste in
cells C15:C19
UPPER LIMITS
Step 9‐2: For the first upper limit (UL), start with cell D13 by entering
the following formula: =$E$11‐$F$9+C13 Î 24. Again, $ sign for cells E11
and F9 to indicate that the specific values of 9 and 1 are constants. Then
copy cell D13 and paste in cells D14:D19 as shown below:
36
FREQUENCIES
Step 10‐1: Determine the frequencies.
Go to cell D2 and type “=”, and then click the cell D13
Copy cell D2 and paste it in cells D3:D8 as shown below:
FREQUENCIES
Step 10‐2: Highlight cells E2:E8, then click the “fx” function, and then
select the frequency, and then click OK as shown below:
37
FREQUENCIES
Step 10‐3: After clicking OK, a new dialog, showing the “function
argument” with “Data Array” and “Bins Array”
FREQUENCIES
Step 10‐4: Click the symbol at the end of “Data array” . A new
dialog will appear as shown below:
Click the symbol below the X, then highlight cells J2:N11 as shown
below:
38
FREQUENCIES
Step 10‐5: For “Bins_array”, click the symbol . A new dialog will
appear as shown below:
Click the symbol under X, then highlight cells D2:D8 as shown below:
FREQUENCIES
Step 10‐6: Press all together Ctrl, Shift and Enter. Then release all at the
same time. The frequency distributions will automatically be shown in
cell E2:E8 as shown below
39
FREQUENCIES
Step 10‐7: Go to cell E13, and then type “=”, then click cell E2. Copy cell
E13 and paste in cells E14:E19 as shown below:
Relative Frequencies
Step 11‐1: To compute for the relative frequency, divide the frequency
with the total number of samples (N). For cell F13, enter the following
formula Î =E13/$E$20
40
Relative Frequencies
Step 11‐2: Copy cell F13 and paste in cells F14:F19 as shown below:
Cumulative Frequencies
Step 12‐1: Starting with cell G13, type “=” and click F13 Î 36%
For cell G14, enter this formula: =G13+F14 Î64%; Copy cell G14
41
Step 12‐2: After copying cell G14, and then paste in cells G15:G19
CLASS MARKS (midpoints)
Step13‐1: Starting with cell H13, use the function AVERAGE by clicking
the “fx” function. Highlight cells C13:D13 as shown below, and then
click OK Î 20.
42
CLASS MARKS (midpoints)
Step13‐2: Copy the value of H13 = 20, and then paste in cells H14:H19 as
shown below
ANALYSIS
Step 14: Enter the data for minimum range, 16‐24 (lowest class),
maximum range, 70‐78 (highest class) and the most range, 16‐24 (the
class that has the highest frequency), and its corresponding relative
frequencies as shown below:
Based on this representation, this indicates that out of 464 men that
died as a result of the crime related incidents during the first week of
July 2010, the most men that died were between the age of 16 and 24
at 36% and the least is between the age of 70 and 78 at 6%. The cause
of this has yet to be determined
43
FD Using Microsoft Excel
Step 15:Create a separate frequency distribution table for the
purpose of plotting the graphs as shown below
HISTOGRAM
To create Histogram, you need the values for CLASS and
FREQUENCIES. Highlight the columns of CLASS and FREQUENCIES,
and then click the CHART WIZARD as shown below
44
HISTOGRAM
Select column and select the 3D type as shown below, and then click
“next”
HISTOGRAM
A new dialog will appear showing what the graph looks like, and then
click “next”
45
HISTOGRAM
A new dialog will appear for you to type the necessary information for
title, x‐axis and Y or Z axis
HISTOGRAM
Your graph will look like this. There will be modifications on this
Num ber of Crim e Deaths
20
15
Num ber of
10
Occurrences
5 Freq
0
16-24 25-33 34-42 43-51 52-60 61-69 70-78
Age Brackets
46
HISTOGRAM
Delete the “Freq” on the right, and adjust the position of “number of
occurrences”, by clicking the “Format Axis Title”
HISTOGRAM
Click the “alignment tab”, and type 90 in the box for degrees, and
then click OK
47
HISTOGRAM
Change the color of the wall, remove the grid lines and indicate value
as shown in the final graph
Number of Crime Deaths
18
16 18
Number of Occurrence
14
12 14
10
8
6 7
4 5
2 3
2 1
0
16-24 25-33 34-42 43-51 52-60 61-69 70-78
Age Brackets
FREQUENCY POLYGON
To create Frequency Polygon, you need the values for RELATIVE
FREQUENCIES and CLASS MARKS (MIDPOINTS). First, click the CHART
WIZARD as shown below, and then select LINE, click NEXT
48
FREQUENCY POLYGON
Highlight the values of Relative Frequency as shown below, and then
click “SERIES”
FREQUENCY POLYGON
After clicking the SERIES tab, the following will appear. Click the
symbol in the box next to the “Category (X) axis labels”, and then
highlight the values of midpoint, then click next
49
FREQUENCY POLYGON
A new dialog will appear for you to input information on the title, x‐
axis and y‐axis, then click finish
FREQUENCY POLYGON
The following graph will appear. Improvements need to be done on
the graph such as the wall color, removal of “series” and grid lines
Crim e Death Statistics
40%
Frequency
Percentage
30%
20% Series1
10%
0%
20 29 38 47 56 65 74
Age Brackets
50
FREQUENCY POLYGON
After making all the changes, your frequency polygon should look
like this:
Crim e Deaths Statistics
40%
35% 36%
30%
28%
25%
20%
15 %
14%
10 % 10%
5% 6%
4%
2%
0%
20 29 38 47 56 65 74
A ge B r a c k e t s
To create Cumulative Frequency Graph, you need the values for
CUMULATIVE FREQUENCIES and CLASS MARKS (MIDPOINTS)
First, click the CHART WIZARD as shown below, and then select LINE,
click NEXT
51
Highlight the values of Cumulative Frequency as shown below, and
then click “SERIES”
After clicking the SERIES tab, the following will appear. Click the
symbol in the box next to the “Category (X) axis labels”, and then
highlight the values of midpoint, then click next
52
A new dialog will appear for you to input information on the title, x‐
axis and y‐axis, then click finish
The following graph will appear. Improvements need to be done on
the graph such as the wall color, removal of “series” and grid lines
Crime Death Statistics
120%
100%
80%
60% Series1
40%
20%
0%
20 29 38 47 56 65 74
Age Brackets
53
After making all the changes, your cumulative frequency graph should
look like this:
Cumulative Frequency of Crime Deaths
110 %
10 0 % 100%
94%
Frequency Percentage
90%
84%
80%
78% 82%
70%
64%
60%
50%
40%
36%
30%
20 29 38 47 56 65 74
Age Brackets
EXERCISE
In 2009, 170 individuals have attended the ISO 9001: 2008 Internal
Quality Audit Training examination. At 95% accuracy, 120 samples were
taken. The following table shows the IQA scores of the 120 samples.
At 60% passing mark, determine the percentage of those who failed,
who passed, the most score bracket and present this in frequency
distribution table with corresponding histograms, frequency polygon
and cumulative frequency polygon
62 78 56 83 91 82 87 74 80 83
85 79 89 91 69 89 88 81 83 79
92 87 60 87 83 81 82 78 76 69
78 81 66 83 87 73 83 84 54 74
76 83 75 89 85 95 87 55 78 94
86 88 86 88 83 87 93 78 89 68
88 65 78 97 65 86 66 85 72 75
82 86 79 93 87 82 78 88 67 83
87 48 81 95 81 82 86 87 71 81
71 81 88 77 78 79 85 79 65 75
69 82 63 89 91 93 84 89 88 78
88 86 85 81 78 86 87 72 85 77
54
EXERCISE
Enter your data similar to this fashion
Create your frequency table template for computation
55
ORIGINS OF PARETO
Italian economist, Vilfredo Pareto (1848 – 1923), first thought out the
Pareto Diagram in 1897
His famous observation known as 80/20 Rule came from his general
observation back in 1906 that 80% of the properties in Italy were
owned by 20% of the population
This forms the principle that 80% of the OUTCOMES come from 20% of
the INPUTS.
It was Dr. J. M. Juran who popularizes and applied the principle in
quality control to classify problems of quality into vital few and trivial
many, known as PARETO ANALYSIS
Juran states that in many cases, most defects, and the cost of these
arises from a relative small number of causes, which became the
PARETO DIAGRAM
Pareto Diagram DATA
Code
Complaint Freq. REL-Freq Cum.F %
Causes
C1 Too long on hold 157 42.90% 42.90%
C2 No evening/weekend staff 83 22.68% 65.57%
C3 Not knowledgeable 41 11.20% 76.78%
C4 Not courteous 22 6.01% 82.79%
C5 Transferred too many times 20 5.46% 88.25%
C6 Could not locate file 11 3.01% 91.26%
C7 No phone payment option 11 3.01% 94.26%
C8 Hard to understand 9 2.46% 96.72%
C9 Charged more than promised 7 1.91% 98.63%
C10 Others 5 1.37% 100.00%
366
56
Pareto Diagram
Customer Service Complaints
100%
90% 94.26% 96.72% 98.63% 100.00%
80% 88.25% 91.26%

82.79%
70% 76.78%
60% 65.57%
50%
40% 42.90%
30%
20%
10%
0%
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10
Com plaints
Analysis of Data
Based on the sample Pareto Diagram, this indicates that the three
biggest complaints by the customer are codes 1, 2 and 3. It is clear that
the top three categories of customer complaints are the most
significant effect on customer service dissatisfaction, which represent
a cumulative total of 76.78%
Based on this analysis, the company needs to concentrate on the
following three top most complaints of the customer to improve the
customer satisfaction.
In this case, the company can up with corrective and preventive
measures by analyzing the root causes of these top three complaints
of the customer
57
Corrective Action Measures
TOO LONG ON HOLD –
This could be due shortage of staff
This could be because of poor training on the CSR
Poor supervision by team leaders
Investigate on the three probable causes
NO EVENING/ WEEKEND STAFF –
The company only operates during day time – investigate
on the cost benefit of extending work hours to include
evening shift and weekends
This might solve the number 1 problem because if the
hours of operation is longer, the customers could spread
out their calling times, thus, putting less strain with the
CSR
58
NOT KNOWLEDGEABLE –
This relates to the first problem and probable cause
With this third biggest customer complaint, it is
imperative that CSR are trained and let them know the
importance of quality and the impact on the business for
not handling calls efficiently.
Pareto Chart using Excel
Start with the type of problems you want to investigate
For the purpose of this illustration, we will use the example of the
complaints regarding the customer service
PROBLEM:
A newly established telecommunications company normally
operates Monday – Friday, 8 AM to 5PM. In the span of its 3 months
operation since it started, the company logged 366 customer service
related complaints.
These complaints were categorized, coded and arranged from the
most frequent number of complaint to the least as shown below:
59
Compute for the Relative Frequency. Starting with cell D2, enter the
formula =C2/$C$12 Î 42.9%. Copy the value of D2 and paste in cells
D3:D11. This should add up to 100% as shown below
60
Compute for the Cumulative Frequency. Starting with cell E2, type
“=”, then click on D2 Î 42.90%. On cell E3, enter the following
formula: =E2+D3 Î 42.9 + 22.68 Î 65.57%. Copy the value of cell
E3, then paste in cells E4:E11. This should add up to 100% when you
reached cell E11 as shown below
Make the Pareto Diagram (chart). Note that code was used in
making the Pareto table for simplistic reason and for graphical
presentation. In Pareto Diagram, you need the values for Categories,
Relative Frequency and Cumulative Frequencies. To start with the
chart, press CTRL when you highlight the values of cells A2:A11,
D2:D11 and E2:E11 as shown below
61
Now, click on the chart wizard icon, and select column, then click next
Next dialog will show up to type the title, x‐axis and y‐axis as shown
below, then click finish
62
After clicking finish, this will appear. Note that modifications will
still have to be made here to make this a Pareto diagram
Click on the graph where the cumulative frequency is as shown
below. Click on the right button of the mouse and select chart
type
63
After selecting the chart type, select the LINE as shown below, then
click OK
After clicking OK, the Pareto Chart will show up. Note that
modification are still needed with this chart
64
After modifications on the chart, the final Pareto Diagram will look like
this
Customer Service Complaints
100%
90% 98.63%100.00%
94.26% 96.72%
80% 88.25%91.26%
82.79%
70% 76.78%
60% 65.57%
50%
40% 42.90%
30%
20%
10%
0%
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10
Com plaints
EXERCISE
On a human resources behavioural study of tardiness, the following
data was gathered as the reasons of the employees for coming late to
work. Create the Pareto Table and Pareto Diagram (Chart) based on
the following data
Got lost 1
Bad weather 57
Sick 17
Traffic 11
Appointment 4
No parking spot 2
Woke up late 103
Bus late 1
Flat tire 1
Lost keys 3
65
SOLUTION
Tardiness Reason Number %Total Cum%
Woke up late 103 51.50% 51.50%
Bad weather 57 28.50% 80.00%
Sick 17 8.50% 88.50%
Traffic 11 5.50% 94.00%
Appointment 4 2.00% 96.00%
Lost keys 3 1.50% 97.50%
No parking spot 2 1.00% 98.50%
Bus late 1 0.50% 99.00%
Flat tire 1 0.50% 99.50%
Got lost 1 0.50% 100.00%
Totals 200 100.00%
66

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Statistical Techniques

Class Tally Freq REL-F Cum.F CumF% MP

Class size = Range ÷ Number of Classes Î c = R ÷ k

Class Tally Freq

Class Tally Freq REL-F To get the Relative

Class Tally Freq REL-F Cum.F

Number of Crime Deaths

Num ber of Crim e Deaths

Number of Crime Deaths

Crim e Death Statistics

Cumulative Frequency of Crime Deaths

80% 88.25% 91.26%

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