Basic Statistics for Six Sigma

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Basic Statistics for Six Sigma

© All Rights Reserved

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You are on page 1of 24

presentation because you

really like statistics, but theres

also the possibility that youd

rather be somewhere else

like maybe playing golf at a

fancy resort or something?

The irony is that sports probably

refers to statistics more than any

other segment of our society.

Statistical Lingo

Virtually everyone has a pretty good

understanding of what is meant by

the word average.

A golfer who shot rounds of 78, 84,

and 87 could compute her average,

or what statisticians would call her

mean ( or x).

NOTE: In general, a Greek letter is

used if an entire populations data is

being checked

but in the case of a sample, the

regular letter is used.

78

75

84

80

85

87

90

Statistical Lingo

Virtually everyone has a pretty good

understanding of what is meant by

the word average.

A golfer who shot games of 78, 84,

and 87 could compute her average,

or what statisticians would call her

mean ( or x), like this:

78

84

+87

249 : 3 = 83

75

80

85

90

Statistical Lingo

Each of these scores deviates from

the average (83) by some amount.

These deviations can be combined

to calculate what is called a

standard deviation.

78

84

+87

249

75

-5

+1

+4

80

85

90

Statistical Lingo

But if we want to calculate the

standard deviation we cant simply

add them up theyll cancel each

other out and well get zero.

On the other hand, squaring the

deviations will prevent that problem.

78

84

+87

249

75

-5 25

+1 1

+4 16

80

85

90

Statistical Lingo

Then we can add the squares up - this

helps to get an estimate of how much

variation is present. (The concept of

adding up squares of differences like

this is called the sum of the squares.)

78

84

+87

249

75

-5 25

+1 1

+4 + 16

42

80

85

90

Statistical Lingo

Then we divide this sum by the number

of scores in the list (N) minus 1. (This is

because we only have a sample of all

this persons golf scores if we had all

of their golf scores we would simply

divide by N.)

78

84

+87

249

75

-5 25

+1 1

+4 + 16

42 : 2 = 21

80

85

90

Statistical Lingo

If we just leave it like this, its called the

variance ( 2 or s2). If we take the square

root (which cancels out the fact that we

squared the deviations earlier) well get

the standard deviation ( or s). (Also,

we divide by 2 because its the number of

data points in the sample minus 1.)

78

84

+87

249

-5 25

+1 1

+4 + 16

42 : 2 = 21

21 = 4.6

75

80

85

90

Statistical Lingo

Another common term is the median.

Its the middle value of the data and is

insensitive to actual values in the set.

Real estate folks might refer to a median

income level for an area its virtually

unaffected by Bill Gates moving into

(or out of) the neighborhood.

78

84

87

75

80

85

90

Statistical Lingo

In a few short slides, weve covered a

number of the most frequently used

statistical terms.

deviation

78

84

+87

249

variance

(s2)

-5 25

+1 1

+4 + 16

42 : 2 = 21

249 / 3 = 83

mean (x)

75

standard

deviation

(s)

21 = 4.6

median

80

85

90

Statistical Lingo

Of course, if you had to manually

compute:

an average

a deviation for each data point

a square of all the deviations

a sum of the squares

a variance

a standard deviation

a median

every time you got some data, things

could get crazy; especially if theres a

lot of data. Thankfully, we have Minitab.

75

80

85

90

1. Enter whatever data you want to analyze into a column in Minitab

Basic Statistics, then on

Display Descriptive

Statistics.

3. In the box labeled Variable, indicate

the column containing the data.

4. Click on the box labeled Graphs.

3.

6. Click OK.

7. Click OK.

4.

5.

7.

6.

Minitab will provide a summary of the data that looks something like this.

Well break this down in pieces to explain all the information displayed.

distribution well enough to

assume normality?

(p < 0.05, no; p > 0.05 yes)

If a set of data is normally distributed it means that when it is plotted

as a histogram it has a symmetric bell shaped distribution.

Normal

Not Normal

Not Normal

analytical methods that would otherwise not be valid. For example, the

mean and standard deviation can be used to predict the odds of having

values fall within certain ranges (like within specified tolerances).

x (sample) or

(population)

s (sample) or

(population)

Mean: The average value of all the data points. (If calculated using a sample of

data from a population it may be written x, if calculated using all the data in the

population it may be written .)

StDev: The standard deviation of all the data points. It can be thought of as the

average distance that data points are from the mean the larger the standard

deviation, the greater the variation. (If calculated using a sample of data from a

population its usually written s, if calculated using all the data in

the population Its usually written .)

s2 (sample) or

2

(population)

N (sample size)

Variance: Equal to the standard deviation squared.

Skewness: A measure of asymmetry the further from zero, the more skewed the

data. For example, if a distribution has a large tail at the upper end of its distribution,

skewness will likely be positive. Typically, the skewness value will range from negative

3 to positive 3.

Kurtosis: A number reflecting how much the sample data resembles a normal

distribution in shape. A very negative kurtosis indicates a distribution that is flatter than

usual, a very positive kurtosis indicates a distribution that is more peaked than usual.

The kurtosis value is approximately zero for a normal distribution.

N: The number of data points used in the creation of this summary.

1st Quartile: The value which 25% of the data points fall below.

Median: The value which 50% of the data points fall below.

3rd Quartile: The value which 75% of the data points fall below.

Maximum: The highest value data point in the sample.

sample of data from a presumably larger population, it

can only estimate what the entire population is like.

Minitab can help us to understand how good our

estimates of things like the mean (Mu), the standard

deviation (Sigma), and median are.

Minitab does this by calculating an interval within which

it is 95% certain that these parameters actually reside if

the whole population were to be included.

The vertical line part way through each of the red boxes is the calculated

mean (top) and median (bottom) for the sample of data entered.

Around these points, Minitab calculates an interval within which it is 95%

certain that the population mean and median actually reside.

For example, in the case of the top red bar, the vertical line in the middle of

the red bar shows a mean of about 50.6. While this is probably not the EXACT

mean for the population, using the number of data points and the amount of

variation they exhibited it can be estimated with good confidence (95%) that

the mean for the population falls somewhere between 48.9 and 52.3.

Minitabs best estimate of what

normal curve fits the data best)

lower than Q1-1.5(Q3-Q1) or

greater than Q3+1.5(Q3-Q1) are

considered outliers and

appear as individual dots

1st quartile

divides data into quarters

Given a process with a

mean = 83 & std dev = 4.6

69.5

74

captured within one standard

deviation of the mean.

95% of the population will be

captured within two standard

deviations of the mean.

83

87.5

92

96.5

68%

34% 34%

78.5

13.5%

13.5%

2.36%

69.5

87.5

68%

74

captured within three standard

deviations of the mean.

78.5

34% 34%

95%

68%

34% 34%

99.73%

13.5%

92

13.5%

2.36%

96.5

Given a process with a

mean = 83 & std dev = 4.6

69.5

74

(shape, mean, and standard deviation)

help to characterize the process

[or the performance of a process].

Its somewhat like when you ship a box

for overnight delivery: the courier wants

to know the length, width, height, and

weight of the box. That information

characterizes the box for them. In other

words, they know what to expect when

they come to get it.

78.5

83

87.5

92

96.5

68%

34% 34%

78.5

13.5%

68%

74

13.5%

2.36%

69.5

87.5

34% 34%

95%

68%

34% 34%

99.73%

13.5%

92

13.5%

2.36%

96.5

Given a process with a

mean = 83 & std dev = 4.6

69.5

some rather powerful implications.

For example, once you know the mean

and standard deviation of a process

thats normally distributed, predicting

the percentage of times something will

fall above or below any given value

(like a tolerance limit, for instance) is

relatively easy.

In other words, we can tell how often

the process will perform properly.

Thats the topic of another tool time:

Process Capability.

74

78.5

83

87.5

92

96.5

68%

34% 34%

78.5

13.5%

68%

74

13.5%

2.36%

69.5

87.5

34% 34%

95%

68%

34% 34%

99.73%

13.5%

92

13.5%

2.36%

96.5

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