054 305 Descriptive Statistics - C

Descriptive Statistics
PROPRIETARY
Descriptive Statistics
Using
Usingscientific
scientificmethods
methods
to
tocollect,
collect,organize,
organize,
summarize,
summarize,andandpresent
present
data.
data.
AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 2 PROPRIETARY

Population
The population consists of all data points (finite

or infinite) defined by certain parameters
Examples:
• All of the Ford seatbelts ever made on A-line
• All purchase orders dated 2003
• All parts made on machine D since the last
improvement was implemented
• The height of every person in the US

Sample
A sample consists of a selected number of data

points from the population which are
representative of the population without having
to account for it completely
Examples:
• 100 of the Ford seatbelts from A-line
• 20 purchase orders from every month of 2003
• The first 60 parts from machine D since the last
improvement was implemented
• The heights of 3,000 people from all over the US

Describing Data
Central tendency
• Where is the middle?
Dispersion
• How spread out is the data ?
Shape of the distribution

• How are the data distributed?

Measures of Central Tendency
Mean
• The sum of all the data
divided by the number of
data
Median
• The numeric middle
Mode
• The most frequently
occurring value

Mean
Mathematical Notation
• The sum of all the data xxnn 
divided by the number of XX 
xx11xx22 xx33
   xxi i
data nn nn
x = x , x , etc.
• Commonly called i 1
n = Number of data in a sample

2
average  = Summation of
• Usually the best Example:

indicator of central 5,3,6,4,7,5,9,6,4,3,2,6
tendency

 55,,33,,66,,44,,77,,55,,99,,66,,44,,33,,22,,66
XX 
12
12
XX 55

Symbols
Population
Sample Estimates Parameters
(Roman Letters) (Greek letters)
Sample
Size n N
Mean
X 

Median
• The middle value Example:

• As many samples above 5,3,6,4,7,5,9,6,4,3,2,6
as there are below when
arranged in numerical
sequence 22,,33,,33,,44,,44,,55,,55,,66,,66,,66,,77,,99
median  55
median

Mean Vs. Median
Salaries of randomly selected US government employees
Case 1 Case 2
Worker 1 $30,000 Worker 1 $30,000
Worker 2 $35,000 Worker 2 $35,000
Worker 3 $40,000 Worker 3 $40,000
Worker 4 $45,000 Worker 4 $45,000
Worker 5 $50,000 US President $400,000
Find
Findthe
themean
meanand
andthe
themedian
medianfor forboth
bothcases.
cases.
Sometimes
Sometimesthe
themedian
medianisisaabetter
betterindicator
indicatorofofcentral
central
tendency
tendency(e.g.
(e.g.when
whenoutliers
outliersexist
existininthe
thedata).
data).

Mode
• The most common value Example:

• The peak of a 5,3,6,4,7,5,9,6,4,3,2,6
distribution
• A very weak indicator of
the center 22,,33,,33,,44,,44,,55,,55,,66,,66,,66,,77,,99
mode  66
mode
• Distributions with two
peaks are called
“bimodal”

Measures of Dispersion
Range
• The largest number minus
the smallest
Variance
• A measure of the difference
between the points and the
mean
Standard Deviation
• The square root of the
variance

Symbols
Population
Sample Estimates Parameters
(Roman Letters) (Greek letters)
Sample
Size n N
Mean
X 
Range
R R
Standard
Deviation s 
Variance
s2 2

Range
• Largest number minus Example:

the smallest 5,3,6,4,7,5,9,6,4,3,2,6
• Good for small groups of
data
• Easy to calculate 22,,33,,33,,44,,44,,55,,55,,66,,66,,66,,77,,99
• Easily distorted by one
unusually large or small RR  9922  77
datum (outlier)

Variance
• A measure of the
difference between the 22
ss 

  X
X 
 X
X
ii  22
points and the mean

• Used in statistical tests
nn11
to represent dispersion
• Units of variance are the Exercise:
Exercise:
data’s original units Determine
Determinethe themean,
mean,
squared variance,
variance,and
andstandard
standard
deviation
deviationofofthe
thefollowing
following
sample:
sample:
8,
8,13,
13,7,
7,10,
10,12,
12,11,
11,10,
10,99

Calculations
n = _8__
X = _10_
Sum of
X = 10 Squares= _28_
2
s = _4__
s = _2__
Instructions
Total
Divide
Take
Count
Square
Subtract
Plot
Divide
Addthe each
the
upeach
the
square
all
the
total
number
point
sum
of
term
mean
of
the
root
on
of
the
of
in
Xi 8 13 7 10 12 11 10 9 80
of
squared
points
samples
the
from
the
squares
the
second
variance
by
each
graph
terms
and
thebypoint
row
number
add
with
n-1
toand
find
to
the
Xi-X -2 3 -3 0 2 1 0 -1 of
write
(degrees
the
respect
samples
find
samples
sum
the
that
it’s
standard
to
of
of
together
value
deviation
the
to
squares
freedom)
find
mean
in the
to
(Xi-X)2 4 9 9 0 4 1 0 1 28 to from
find (X
{find
deviation
third
mean
the
the
ai-X)
row 2
total
variance
mean }

Standard Deviation
• The square root of the

variance
• Most common measure ss 

  X
X 

ii X
X  22
of spread for collections nn11

of data larger than 10
items
• Works fine for small
samples
• Not easily “pulled” by
one outlier

Exercise
For each data set, circle which measure of “middle” and “spread” to
use. (More than one is possible)
Data Set Middle Spread
2,5,3 Mean Range

Median Variance
Mode Standard Deviation
3,4,6,1,4,5,7,2,4,1, Mean Range

Median Variance
1000,5,7,3
3,4,6,1,4,5,7,2,4, Mean Range

Median Variance
1,5,7,3,3,7,4
2,4,6,651 Mean Range

Median Variance

Measures of Data
Mean,
Mean, median,
median, range,
range, standard
standard
deviation,
deviation, and
and variance
variance apply
apply
regardless
regardless ofof how
how the
the data
data are
are
distributed.
distributed.

Distribution Shapes
• Describes how the data

is dispersed
• Types of distributions
• Normal
• Gaussian
• “Bell curve”
• F distribution
• T distribution
• Chi-square distribution
• Uniform distribution
• Weibull distribution

Dispersion (Spread)
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
cm
A bag of marbles is sorted

according to size.
Dotplot
Number of cases
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
cm
Size of marble
The result is a natural graph of the number of

cases (frequency) vs. the marble diameter. This is
called a dotplot.
Histogram
Number of cases
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
cm
Size of marble
If a bar chart is made with bars at the height of the

marble stacks, the result is called a histogram.

Distribution Curve
Number of cases
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
cm
Size of marble
If an infinite number of marbles were measured,

and the increment size was infinitesimal, the result
would be a continuous distribution curve.
Estimating Frequency
Number of cases
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
cm
Size of marble
The number of cases that happen between two

points is approximately the area under the
distribution curve between those two points.
Data Distributions
Mathematical models Types of Distributions

• If the data fits the model, the • Normal
model can be used to
represent the population
• Gaussian
• “Bell curve”
• Used in established
mathematical formulas • F distribution
• Entire population can be • T distribution
expressed with a few
parameters
• Chi-square distribution
• Future points from the same • Uniform distribution
population can be predicted • Weibull distribution

The Normal Distribution
• Occurs often in nature Mean, median,

• Symmetric and mode
• The left half is the mirror

image of the right half
• The mean, median, and
mode all occur exactly in
the middle of the curve
• Once the mean and
standard deviation of the
normal curve have been
specified, the curve is
completely known

Properties of the Normal Distribution
• About 68% of all cases

occur within +/-1
standard deviation of the
mean
• About 95% of all cases
occur within +/-2
standard deviations of
the mean -3 -2 -1 +1 +2 +3
• About 99.7% of all cases 68%
occur within +/-3 95%

99.7%
standard deviations of
the mean

Marble Exercise
If the marble sizes are normally distributed

• What percent of marbles will be rejected if the size
specifications are:
• 2 standard deviations above and below the mean?
• The upper specification is set at the mean, and the lower
specification is set 12 standard deviations below the mean?
• 6 standard deviations below and 1 standard deviation above the
mean?
• If nothing disturbs the process, what are the chances
of getting a marble more than 6 standard deviations
below the mean?

Describing Data with
Graphs
PROPRIETARY
Pareto Chart
Pareto Chart of defect
250 100
200 80
150 60
Percent
Count
100 40
50 20
0 0
defect scratch chip dent bubble Other
Count 125 65 32 15 8
Percent 51.0 26.5 13.1 6.1 3.3
Cum % 51.0 77.6 90.6 96.7 100.0
“The important few, vs. the unimportant many.”

Pareto Chart
• A pareto Chart is a bar 250

Pareto Chart of defect
100
chart of frequencies with 200 80
the input sorted such 150 60
Percent
Count
that the category with 100 40
the most occurrences is 50 20
on the far left 0

defect scratch chip dent bubble Other
0
• The red line is the

Count 125 65 32 15 8
Percent 51.0 26.5 13.1 6.1 3.3
Cum % 51.0 77.6 90.6 96.7 100.0
cumulative frequency
A
A pareto
pareto chart
chart is
is used
used to
to
prioritize
prioritize resources
resources to to where
where
they
they will
will have
have the
the most
most impact
impact

Time Series Plot
Time Series Plot of travel time
70
60
50
travel time
40
30
20
10
1 10 20 30 40 50 60 70 80 90 100
Index

Time Series Plot
• Plots the individual 70

Time Series Plot of travel time
points in consecutive 60
order 50
travel time
40
• Places the data in the 30
context of time 20
10
• Visually allows changes 0
1 10 20 30 40 50 60 70 80 90 100
over time to be seen Index
• Interpretation can still be

A
A time
time series
series plot
plot is
is used
used to
to
subjective
put
put data
data in
in context
context with
with time
time

Process Behavior Chart
I Chart of travel time

1
70 1 1
UCL=64.35
60
50 Limits that
Individual Value
indicate
40
_ unusual
X=34.60
30 outcomes
20
10
LCL=4.85
0
1 1
Mean 1 10 20 30 40 50 60 70 80 90 100
Observation

Process Behavior Chart
• Data is displayed in the same I Chart of travel time
manner as in a Time Series 70

1
1 1
UCL=64.35
Plot 60
• Green line indicates the mean

50
Individual Value
40
of the data 30
_
X=34.60
• Red lines indicate process 20
limits 10
LCL=4.85
• They are calculated from the 0
1 1
data itself 1 10 20 30 40 50 60
Observation
70 80 90 100
• Points outside the lines indicate

unusual outcomes or potential
signals A
A process
process behavior
behavior chart
chart is
is
• Often called control limits
used
used toto look
look for
for exceptional
exceptional
• Interpretation is more
variation
objective variation inin time
time series
series data
data

Histogram
Histogram of travel time
Normal
25 Mean 34.60
StDev 10.48
N 100
20
15
Frequency
10
0
0 10 20 30 40 50 60 70
travel time

Histogram
• The histogram plots the Histogram of travel time

Normal
variable (travel time) vs. the 25 Mean

StDev
34.60
10.48
number of occurrences 20
N 100
(frequency) 15
Frequency
• Most of the travel times occur 10
between 20 and 50 minutes

5
• The data seems to be

0
centered at about 35 minutes 0 10 20 30 40
travel time
50 60 70
• The normal curve (the blue

line) represents normally A
A histogram
histogram is is used
used to
to
distributed data with the
visually
visually understand
understand howhow the
the
mean and standard deviation
estimated from the sample
data
data is
is distributed
distributed

Summary
Measures of central tendency

• Mean, Median, and Mode
• Mean is usually preferred
Measures of dispersion
• Range, Variance, and Standard Deviation
• Standard Deviation is most often used
There are many types of data distributions
If your data are normally distributed
• 68% within one standard deviation of the mean
• 95% within two
• 99.7% within three

Exercise
Class Heights
• Collect the heights of all the people in the class
• Determine the Mean, Median, Range, and
Standard Deviation of those heights
• Assume that heights are normally distributed,
and that the class members are typical of all
Autoliv employees. About what percent of
Autoliv employees are over 6 feet (1.8 meters)
tall?

Answers to Marble Exercise
• Question
• What percent of marbles will be rejected if the size specifications are set at 2
standard deviations above and below the mean?
• Solution
• Two standard deviations on both sides will include 95% of the parts.
Therefore, the amount rejected will be: 100%-95% = 5%
• Question
• What percent of marbles will be rejected if the upper specification is set at
the mean and the lower specification is set at 12 standard deviations below
the mean?
• Solution
• Half of the parts will fall below the mean and almost no parts will fall below
12 standard deviations. Therefore, the amount rejected will be: 50%-0% =
50%

Answers to Marble Exercise cont.
• Question
• What percent of marbles will be rejected if the size specifications are set
at 6 standard deviations below the mean and 1 standard deviation above
the mean?
• Solution
• Six standard deviations below the mean will include about 50% of the
parts. One standard deviation above the mean will include about 68%/2
= 34%. Therefore, the amount rejected will be: 100%-(50%+34%) = 16%
• Question
• If nothing disturbs the process, what are the chances of getting a marble
more than 6 standard deviations below the mean?
• Solution
• Almost zero

References
“Descriptive Statistics” -Promontory

Management Group
• (c) 2001 Promontory Management Group, Inc.

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Descriptive Statistics

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 2 PROPRIETARY

The population consists of all data points (finite

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 3 PROPRIETARY

A sample consists of a selected number of data

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 4 PROPRIETARY

Shape of the distribution

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 5 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 6 PROPRIETARY

n = Number of data in a sample

• Usually the best Example:

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 7 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 8 PROPRIETARY

• The middle value Example:

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 9 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 10 PROPRIETARY

• The most common value Example:

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 11 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 12 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 13 PROPRIETARY

• Largest number minus Example:

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 14 PROPRIETARY

points and the mean

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 15 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 17 PROPRIETARY

• The square root of the

of spread for collections nn11

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 18 PROPRIETARY

Data Set Middle Spread

2,5,3 Mean Range

3,4,6,1,4,5,7,2,4,1, Mean Range

3,4,6,1,4,5,7,2,4, Mean Range

2,4,6,651 Mean Range

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 19 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 20 PROPRIETARY

• Describes how the data

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 21 PROPRIETARY

A bag of marbles is sorted

The result is a natural graph of the number of

If a bar chart is made with bars at the height of the

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 24 PROPRIETARY

If an infinite number of marbles were measured,

The number of cases that happen between two

Mathematical models Types of Distributions

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 27 PROPRIETARY

• Occurs often in nature Mean, median,

• The left half is the mirror

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 28 PROPRIETARY

• About 68% of all cases

• About 99.7% of all cases 68%

occur within +/-3 95%

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 29 PROPRIETARY

If the marble sizes are normally distributed

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 30 PROPRIETARY

“The important few, vs. the unimportant many.”

• A pareto Chart is a bar 250

chart of frequencies with 200 80

the input sorted such 150 60

the most occurrences is 50 20

on the far left 0

• The red line is the

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 33 PROPRIETARY

AUTOLIV-AOA/FW-TR/6-27-03/What is 6 Sigma - 34 PROPRIETARY