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**Chi-Square Analysis
**

Measure Analyze Improve Control

LEAN SIX SIGMA

Chi-Square Training for Attribute Data

Bonacorsi Consulting 2 .What Is A Chi-Square Test? What The Lean Six Sigma is a Chi-Square? probability density curve of a chi-square distribution is asymmetric curve stretching over the positive side of the line and having a long right tail. The form of the curve depends on the value of the degrees of freedom.

Calculation of this goodness of fit test is by comparison of observed data with data expected based on the particular distribution. This test procedure is also known as the Pearson chi-square test. Typically. Chi-square Goodness-of-fit Test is used to test if an observed distribution conforms to any particular distribution. the hypothesis is whether or not two different populations are different enough in some characteristic or aspect of their behavior based on two random samples. therefore can be used for nominal data) test of statistical significance widely used bivariate tabular association analysis.Types of Chi-Square Tests? Types Lean Six Sigma of Chi-Square Analysis: Chi-square Test for Association is a (non-parametric. Bonacorsi Consulting 3 .

To accomplish this. would be “expected” in each group involved. It starts by determining how many defects. it breaks all outcomes into groups. 4 Bonacorsi Consulting . What the Chi-Squared Test does: It does this by assuming that all groups have the same defect rate (which Minitab approximates from the data provided). Chi-Square determines that the groups do not have the same proportion.The Basics When to apply a Chi-Squared Test: Lean Six Sigma Chi-Squared test is used to determine if there is a statistically significant difference in the proportions for different groups. If the numbers are different by a large enough amount. Minitab then compares the expected counts with what was actually observed. for example.

05) means the populations do NOT have the same proportions. At the very least.The Basics (Cont. in fact. Ho: The null hypotheses (P-Value > 0. Expected cell counts should not be low (definitely not less than 1 and preferable not less than 5) as this could lead to a false positive indication that there is a difference when.) Chi-Square Requirements: Lean Six Sigma Data is typically attribute (discrete). Chi-Square Hypotheses: Bonacorsi Consulting 5 . Ha: The alternate hypotheses (P-Value <= 0. all data must be able to be categorized as being in some category or another). none exists.05) means the populations have the same proportions.

Using Minitab – Step 1 Lean Six Sigma Enter Category Names Enter the Defect Qty for the Data Collection Period Step 1: Enter data into Minitab Enter the Success Qty for the Data Collection Period Bonacorsi Consulting 6 .

then Chi-Squared Test (Two-Way Table in Worksheet…) Lean Six Sigma Bonacorsi Consulting 7 . then Tables.Using Minitab – Step 2 Step 2: Choose Stat.

Using Minitab – Step 3 Step 3: Enter the subgroup data to compare Lean Six Sigma Determine the subgroups you want to compare for variation. In this example we examine the variation between success (C2) & Defect (C3) for each Engineering Change Proposal (ECP) Bonacorsi Consulting 8 Enter category names you want to compare Choose Ok to run ChiSquared Test Click help for Minitab help on Chi-Square .

05.45. in other words the groups (Machines) involved do NOT have the same defect rate. .87)2 / 45.87 = 0.752 Observed counts Expected counts Sum of each category (Machine) Lean Six Sigma Machine #5 Sum of all observed counts Degree of Freedom (df = n-1) Bonacorsi Consulting 9 Since the P-Value is <= 0.The Session Window Results The Chi-Square test calculates using the formula (40 . there is a 95% chance that there IS a statistically significant difference.

Chi-Square Statistic Lean Six Sigma The series of numbers are added together for the overall chisquare statistic. When the value of the Chi-square statistic is high enough. Bonacorsi Consulting 10 . the differences between the groups are concluded to be too large to be mere chance and the groups are determined to be truly different.

This is particularly troublesome if more than 20% of the cells have expected counts less than 5 and the contribution to the overall chi-square statistic is considerable. In either of these cases.Errors in the Chi-Square Lean Six Sigma Note: if the expected cell counts are below 5. if any of the expected cell counts are below 1. the binomial distribution (Minitab: Stat/ ANOVA/ Analysis of Means) may be able to be used. Minitab will not even produce a p-value since the chi-square statistic is sure to be artificially inflated. The warning is generated because of the fact that with the expected count in the denominator. Minitab will print a warning. Additionally. a small value potentially creates an artificially large chisquare statistic. Lastly: Attribute Gage R&R (AR&R) or Kappa Test is needed with an acceptable level of measurement system error prior to running a Chi-Square Analysis Bonacorsi Consulting 11 .

group 2 produced 8 defective documents. and 300 documents on line 3. is this data statistically significant? Yes or No Note: Answers are located in the note section of this slide Bonacorsi Consulting 12 . Additionally. Consider a certain operation which produced 100 documents on line 1. what would be the expected number of defects seen by group 3 if the null hypothesis were completely true? a) 24 b) 18 c) 12 d) 6 Enter data in to Minitab like this: Group (group 1) (group 2) (group 3) Defective 17 8 11 Acceptable 83 192 289 2. 200 documents on line 2.Lets See How You Do Lean Six Sigma Example test questions for Analyze 1. it is known that group 1 produced 17 defective documents. Using the same data set. If a chi-square test were done on this data. and group 3 produced 11 defective documents.

1.) Tricks An (MSA) Attribute R&R (Kappa Analysis) for discrete data or Gage R&R for continuous (variable) data is used prior to calculating the Chi-Square Test to ensure that the measurement variation < 10% Contribution.Tips and Tricks Tips: Lean Six Sigma Determine the subgroups and categories to be tested for variation (differences in proportions) as part of your data collection plan. 2 hr) can be categorized into Cycle Time Met = 1 where success is cycle time <= 8 hrs or Cycle Time Not Met = 0 where a defect is cycle time > 8 hrs. Bonacorsi Consulting 13 . Define the operational definitions for success/defect. If the measurement variation is > 10% then the variation you will see in the Chi-Square Test is not valid as too much of the variation seen is coming from your measurement system (10% MSA error) and not your process variation.5 hr. the stratifications layers (subgroups) and the Cause & Effect diagram (fishbone) to pre-determine where the team believes differences in proportions may exist. Continuous (Variable) data can usually be converted into Discrete (Attribute) data by using categories (Example: cycle time (continuous 1 hr.

Define Chi-Square Analysis Appendix A Measure Analyze Improve Control LEAN SIX SIGMA Backup Slides .

179 + 1.92 16.752 + 0.312 + 0.393 + 1.247 + 0.489 would to be >to be >where need 16.05 The sum of thethe The sum of ChiSquared Test Chi-Squared Test (18.637 = 18.264 + 0.255 + 0.814 + 2.492 + 0.92 df = 9) for = 9 where df Ho Chi Squared Distribution table is used by Minitab to calculate the P-Value using the Degree of Freedom (df) and the variation between each category’s data sets being compared for differences. Bonacorsi Consulting 15 .319 + 1.489 Lean Six Sigma Row for 95% confidence Degree of Freedom (df) = n-1 Machine example for Success or Defect per Month where we had n = 10 (Machines) Df = 10 – 1 = 9.752 + 0.028 + 1.264 + 0.471 + 0. P-Value = 0.Chi-Square (X2) Distribution Machine Example Summary Chi-Sq = 0. the PValue <= 0.217 + 0.489 would need (18. DF = 9.689 + 2.376 + 1.030 To be 95% confident of a difference.637 + 0.391 + 1.

Bonacorsi Consulting 16 .Chi-Square (for Two-Way) Chi-Square equation for two-way tables: g 2 Lean Six Sigma c = 2 S j=1 (f o f e) fe Where: f0 = observed frequency fe = expected frequency r = number of rows c = number of columns g = number of groups = r * c degrees of freedom = (r-1) * (c-1) All fe’s should be > 5 * * For expected frequencies less than 5 the calculated chi-square value changes dramatically as fe changes. Ho: Independent (There is no relationship between the populations) Ha: Dependent (There is a relationship between the populations) Rejection Criteria: Fail to reject Ho when p 0.05 Compare a calculated value to a critical values from a c2 table.05. Therefore the calculated value becomes less reliable and should be interpreted cautiously. Accept Ha when p < 0.

net 603-401-7047 Bonacorsi Consulting 17 . President Lean Six Sigma Master Black Belt 14 Clinton Street Lean Six Sigma Salem NH 03079 sbonacorsi@comcast.Bonacorsi Consulting Steven Bonacorsi.

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