# Chapter - 4

Fundamentals of Statistical Concepts & Techniques in Quality Control and Improvement
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Basic Terminologies
• Population
– Set of all items that possess a certain characteristic of interest – Eg. Average thickness of the plastic cups produced in week no. 23 (10,000)

• Sample
– A subset of population – Eg. Selecting 200 plastic cups from the week 23 output

• Statistic
– A characteristic of a sample, which is used to make inferences on the population parameters that are unknown – Eg. Average thickness of 200 plastic cups is 1mm
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• Parameter
– Is a characteristic of a population, which describes it – Eg. Average thickness of 10,000 cups

Assigning Probabilities
• Classical Method
Assigning probabilities based on the assumption of equally likely outcomes.

• Relative Frequency Method
Assigning probabilities based on experimentation or historical data.

• Subjective Method
Assigning probabilities based on the assignor’s judgment.

Basics of Probability • Probability of an event describes the chance of occurrence of that event • A probability function is bound by 0 and 1 – 0 for non-occurrence. of event A is given by P(A) = na / N and probability associated with sample space is P(S) = 1 4 . then the prob. 1 for occurrence • Set of all outcomes of an experiment is called ‘sample space’ (S) • If each outcome in sample space is likely to happen.

P(Ac) = 1 – P(A) • Laws – Additive law defines the probability of the union of 2 or more events (say A & B)..e.Basics of Probability – Contd. B may happen or both – P(A u B) = P(A) + P(B) – P(A n B) 5 . say A. • Events – Simple events cannot be broken into other events – Compound events are made up of two or more simple events – Complementary of an event. implies the occurrence of everything except A.e. implies A may happen. i. i.

i.P(B) 6 . • Laws – contd.P(B | A) = P(B). implies all the events in the group occurs – P(A n B) = P(A).Basics of Probability – Contd.e.e. if the outcome of one has no influence on outcome of other – P(B | A) = P(B) and hence P(A n B) = P(A).. (i.P(A | B) – P(B | A) represents conditional probability. – Multiplicative law defines the probability of the intersection of 2 or more events (say A & B).. probability that B occurs if A has) • Independence – Two events A & B are said to be independent..

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the additive rule will be P(A or B or both) = P(A) + P(B) – P(A). if they cannot happen simultaneously. If A & B are independent. • Mutually Exclusive – Two events A & B are said to be mutually exclusive. – Probability of Intersection P(A n B) = 0 and probability of union P(A u B) = P(A) + P(B) – For mutually exclusive.P(B) 8 .Basics of Probability – Contd.. the events A & B are dependent.

analysis and making of inferences from data • Descriptive Statistics – Describes the characteristics of product or process using information collected on it • Inferential Statistics – Draws conclusion on unknown process parameters based on sample information • Data Collection – Direct observation – Indirect observation (Questionnaires) • No control over data and Chances of Error is more – It can be described by random variable – continuous or discrete 9 . classification.Statistics • Statistics is the science that deals with the collection.

Statistics – Contd. No. target is realized • Precision – Refers to the degree of variability of observation 10 . Diameter of a hub in a tire • Accuracy – Refers to the degree of uniformity of the observations around a desired value. • Continuous variable – Variable that can assume any value on a continuous scale within a ‘range’ Eg. such that on average. of defect in a shirt – They are classified as acceptable or not – Continuous characteristic can also be viewed as discrete.. Viscosity of a resin • Discrete variable – Variable that can assume a finite number of values are called discrete Eg. Eg.

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5 – poor • Interval Scale – Data has the properties of ordinal data and a fixed unit of measure describes the interval between observations – Eg. Temp. 1. of cement bag: 100 kg. 12 .2kg. of water in diff stages of cooling during 2 hrs interval • Ratio Scale – Data has the properties of Interval data and a natural zero exists for measurement scale Eg.outstanding.Measures of Scale • Nominal Scale – Data variables are simply labels to identify an attribute – Eg. Wt. 100. Grades. Critical / Major / Minor • Ordinal Scale – Data has the properties of nominal data – Data ranks or orders the observation – Eg.

people who receive a mail order offer might be classified as "no response. 2 being better than 1." "purchase and pay. Nor is the improvement from 2 to 4 necessarily the same "amount" of improvement as the improvement from 6 to 8. there is no implication that a 4 is twice as good as a 2. • An ordinal scale is a measurement scale that assigns values to objects based on their ranking with respect to one another. For example. with 1 being better than 0.Measures of Scale • A nominal scale is really a list of categories to which objects can be classified. a doctor might use a scale of 0-10 to indicate degree of improvement in some condition. from 0 (no improvement) to 10 (disappearance of the condition)." The data so classified are termed categorical data. etc 13 . While you know that a 4 is better than a 2." "purchase but return the product. For example. All we know is that there are 11 categories." and "purchase and neither pay nor return.

and where "0" on the scale represents the absence of the thing being measured.Measures of Scale • An interval scale is a measurement scale in which a certain distance along the scale means the same thing no matter where on the scale you are. • A ratio scale is a measurement scale in which a certain distance along the scale means the same thing no matter where on the scale you are. Fahrenheit and Celsius temperature scales are examples. Thus a "4" on such a scale implies twice as much of the thing being measured as a "2." 14 . but where "0" on the scale does not represent the absence of the thing being measured.

Female.• Interval Data: Temperature. Race. Length (data that has an absolute zero) • Nominal Data: Male. Dates (data that has has an arbitrary zero) • Ratio Data: Height. Political Party (categorical data that cannot be ranked) • Ordinal Data: Degree of Satisfaction at Restaurant (data that can be ranked) 15 . Age. Weight.

We can say that a temperature of 40 degrees is higher than a temperature of 30 degrees. as the Kelvin temperature scale is a ratio scale. For example.com/textbook/elementary-concepts-in-statistics/ • Interval variables allow us not only to rank order the items that are measured. Interval scales do not have the ratio property. they feature an identifiable absolute zero point. Typical examples of ratio scales are measures of time or space. temperature.statsoft. as measured in degrees Fahrenheit or Celsius.http://www. Ratio variables are very similar to interval variables. thus. we can correctly state that it is twice as high. but also to quantify and compare the sizes of differences between them. not only can we say that a temperature of 200 degrees is higher than one of 100 degrees. For example. and that an increase from 20 to 40 degrees is twice as much as an increase from 30 to 40 degrees. Most statistical data analysis procedures do not distinguish between the interval and ratio properties of the measurement scales. in addition to all the properties of interval variables. • 16 . constitutes an interval scale. they allow for statements such as x is two times more than y.

as it is not influenced by extreme values in dataset • Mode – Is the value that occurs more frequently in a dataset – A dataset having more than one mode is called Multi-modal • Trimmed Mean – Obtained by calculating the mean of data.Measures of Central Tendency • Mean – Simple average of the observations in a dataset – Sample Mean. Population Mean (formulae) • Median – Is the value in the middle. that remain after a proportion of high and low values being deleted (a% trimmed) 17 . when observations are ranked – It is more robust than mean.

Measures of Dispersion • Provides information on the variability or scatter of the observations around a given value • Range – Difference between largest and smallest value in the dataset – R = XL .e. average of sample variance (keeps varying between sample) should be equal to population variance which is constant 18 . Sample Variance (formulae) • Variance • Why n-1 in sample variance? – To satisfy the property of unbiasedness i.XS – Measures the fluctuation of the observations around the mean – Population variance.

75 (n+1)) – Difference between 3rd quartile and 1st quartile (IQR = Q3 – Q1) – Larger the value of IQR.Measures of Dispersion • Standard Deviation – Mostly used measure of dispersion and has the same unit as the observation – Measures the variability of the observation around the mean – Population Standard Deviation. Sample Standard Deviation • Inter Quartile Range – Lower / First quartile (Q1) is the value such that 1/4th of the observations fall below it and 3/4th fall above it (Q1 = 0. greater the spread of data – To find IQR. the data are ranked in ascending order and then Q1 and Q3 are calculated 19 .25 (n+1)) – Vice Versa for Third Quartile (Q3) (Q1 = 0.

Less peaked. V2 > 3 – Platykurtic. Mean < Median – Positively skewed: V1= +ve. Mean > Median – Not skewed: V1= 0.Measures of Skewness & Kurtosis • Skewness coefficient (V1) – Describes the asymmetry of the dataset about the mean or indicates the degree to which distribution deviates from symmetry (formulae) – Negatively skewed: V1= -ve. V2 < 3 20 • Kurtosis coefficient (V2) . V2 = 3 – Leptokurtic. Mean = Median – Is a measure of peakness of the dataset (formulae) – Is also a measure of heaviness of the tails of distribution – For normal distribution (Mesokurtic). More peaked.

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Measures of Association • Indicates how two or more variables are related to each other • Small values indicate weak relation and large value for strong • Correlation coefficient (r) – Is a measure of the strength of the linear relationship between 2 variables – Sample correlation coefficient is always between -1 and 1 – Formulae – 1 denotes perfect +ve linear relationship. -1 denotes perfect –ve linear relationship and 0 denotes uncorrelated • Sample Problem 22 .

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• Researchers at the European Centre for Road Safety Testing are trying to find out how the age of cars affects their braking capability. The results are set out in the table below: 24 . They test a group of ten cars of differing ages and find out the minimum stopping distances that the cars can achieve.

3 G 53 36.2 E 38 36.2 H 60 44.5 F 46 35.4 B 15 29.6 D 30 36.3 C 24 37.• Car ages and stopping distances • Car Age (months) Minimum Stopping at 40 kph (metres) A 9 28.8 J 76 47.2 25 .1 I 64 44.

If it lies close to either of these two values. then the dispersion of the scattergram points is small and therefore a strong correlation exists between the two variables.7 • r = 10 x 16713. 26 .14 r = 0.4152) (10 x 14457.62)} r = 11259 / (44005 x 3501.84) r = 11259 / 124.• x-bar = 415/10 = 41. the dispersion is large and the variables are uncorrelated.3 .6 / {(10 x 21623 .6/10 = 37.72 .375. The positive or negative sign on the value of r indicates positive or negative correlation.) If r is close to 0.415 x 375.5 y-bar = 376. • For r to equal exactly -1 or +1 must mean that correlation is perfect and all the points on the scattergram lie on the line of best fit (otherwise known as the regression line.91 • r always lies in the range -1 to +1.

2.… – Sum of all P(xi) = 1 • Continuous random variable can take a infinite number of values and hence probability distribution is expressed by Mathematical function – f(x) >= 0 for all x. i = 1. P(xi) = P(X = xi). while population data are described by probability distribution • For discrete random variables. where P(a ≤ x ≤ b) = b∫af(x)dx – Integration from minus infinity to plus infinity is one 27 .Probability Distribution • Sample data can be described with histograms. the probability distribution shows the value that the variable can take and their corresponding probabilities – P(xi) ≥ 1 for all i.

Example – Rolling 2 Dice (Red/Green) Y = Sum of the up faces of the two die. Table gives value of y for all elements in S Red\Green 1 2 3 4 5 6 1 2 3 2 3 4 3 4 5 4 5 6 5 6 7 6 7 8 7 8 9 4 5 6 5 6 7 6 7 8 7 8 9 8 9 10 9 10 11 10 11 12 .

Rolling 2 Dice – Probability Mass Function & CDF y p(y) F(y) 2 3 4 5 1/36 2/36 3/36 4/36 1/36 3/36 6/36 10/36 # of ways 2 die can sum to y p( y )  # of ways 2 die can result in F ( y )   p(t ) t 2 y 6 7 8 9 5/36 6/36 5/36 4/36 15/36 21/36 26/36 30/36 10 11 12 3/36 2/36 1/36 33/36 35/36 36/36 .

it is 1 and it is 0 for minus infinity • Expected value – µ = E(x) = ∑ all i xi p(xi) . x tending to infinity. F(x) = b∫a f(x)dx • F(x) is a non decreasing function of x such that for limit. if x is continuous • Variance of a random variable is given by 30 – Var(X) = E[(X . F(x) = ∑ all i p(xi) for xi ≤ x • For a continuous random variable.Cumulative Distributive function • For a discrete random variable.µ)2] = E(X2) – [E(X)]2 . if x is discrete – µ = E(x) = b∫a x f(x)dx.

n: Size of sample – Mean µ = E(x) = nD/N – Variance σ2 = Var(x) = nD/N(1 – D/N)((N-D)/N-1)) 31 . (N-D)c(n-x) / Ncn • D: no. the probability distribution of nonconforming item (x) is given by P(x) = Dcx . of defects in sample • N: Size of population. getting a nonconforming item as success. where the outcomes are success or failure – If we consider. of defects in population.Discrete Distributions • Hyper geometric distribution – Useful in sampling from a ‘finite’ population without replacement. x: no.

x = 0. – Mean µ = E(x) = np – Variance σ2 = Var(x) = np(1 – p) 32 . or to sample with replacement from a finite population – Probability of success (p) on any trial is assumed to be a constant – Let x denote the no.Discrete Distributions • Binomial distribution – Series of independent trials – Useful in sampling from a ‘large’ population without replacement. probability of x successes is given by • P(x) = ncx .. 2. if n trials are conducted. px (1-p)n-x .1. of successes.

• Trials are independent in binomial. but not in hyper-geometric • Probability of success on any trial remains constant in binomial but not in hypergeometric • hyper-geometric approaches to binomial as N→∞ and D/N remains constant 33 .

2. when ‘n’ is large (n→∞) and ‘p’ is small (p→0). λx / x! . of events that happen within a product unit. No. x = 0.1. of events is given by λ – Mean µ = Variance σ2 = λ – It is used as an approximation to the binomial. Eg. space or volume or time period.Discrete Distributions • Poisson distribution – Used to model the no. of defects per unit is constant 34 .. of events (x) is given by • P(x) = e-λ . – Mean or average no. such that np = λ is a constant or average no. of machine breakdown per month – Probability distribution function of the no.

74%. µ +/.2σ is 95. σ = population std. -∞ < x < ∞ – µ = population mean. As µ increases.σ is 68.44%.Continuous Distribution • Normal Distribution – Most widely used – Probability density function of a normal random variable is f(x) = 1/√2πσ exp[-(x . values of µ & σ and hence it needs standardization 35 . deviation – Change in mean changes the location of distribution.3σ is 99. distribution shifts right and vice versa – As variance increases. – Shape of the density function changes for diff. µ +/. the spread about mean increases – Normal distribution is symmetric and Mean = Median = Mode – Proportion of population values that fall in the range of µ +/.26%.µ)2/ 2σ2].

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