DESIGN OF EXPERIMENTS

Instructor: Engr. Ambreen Tajammal

X BAR CHART:
X-bar Control Charts
X-bar charts are used to monitor the mean of a process
based on samples taken from the process at given
times(hours, shifts, days, weeks, months, etc.). The
measurements of the samples at a given time constitute a
subgroup.
Typically, an initial series of subgroups is used to estimate
the mean and standard deviation of a process. The mean
and standard deviation are then used to produce control
limits for the mean of each subgroup
X BAR CHART:
X BAR CHART:
DATA AND STATISTICS
 Applications in Business and Economics
 Data
 Data Sources
 Descriptive Statistics
 Statistical Inference
Data:
 Elements, Variables, and Observations
 Scales of Measurement
 Qualitative and Quantitative Data
 Cross-Sectional and Time Series Data
DATA, ELEMENTS VARIABLES,
OBSERVATION
• Data are the facts and figures that are collected, summarized, analyzed,
and interpreted.
• The data collected in a particular study are referred to as the data set.

The elements are the entities on which data are collected.

A variable is a characteristic of interest for the elements.
The set of measurements collected for a particular element is called an
observation.
The total number of data values in a data set is the number of elements
multiplied by the number of variables.
DATA, DATA SETS,
ELEMENTS, VARIABLES, AND OBSERVATIONS

Observation
Variables
Stock Annual Earn/
Compa Exchange Sales($M) Sh.($)
Dataram AMEX 73.10 0.86
EnergySouth OTC 74.00 1.67
Keystone NYSE 365.70 0.86
LandCare NYSE 111.40 0.33
Psychemedics AMEX 17.60 0.13

Elements Data Set Datum

 Nominal (Data describes categories)
Example:
TYPES OF DATA: Students of a university are classified by the school in which they are
enrolled using a nonnumeric label such as Business, Humanities,
Education, and so on.
• Nominal
• Ordinal Alternatively, a numeric code could be used for the school variable
• Scale (e.g. 1 denotes Business, 2 denotes Humanities, 3 denotes Education,
and so on).
Ordinal (where preference is specified)
Example:
• Students of a university are classified by their class standing
using a nonnumeric label such as Freshman, Sophomore, Junior,
or Senior.

• Alternatively, a numeric code could be used for the class

standing variable (e.g. 1 denotes Freshman, 2 denotes Sophomore,
and so on).
SCALE:

All types of data where measurement and counts are used

For example,

weights of students in a class

Salaries of employees in an organization
Percentage attendance
Age of Patients in a hospital
Number of Top Class Students in each Semester
QUALITATIVE AND
QUANTITATIVE DATA
 Data can be further classified as being qualitative or
quantitative.
 The statistical analysis that is appropriate depends on
whether the data for the variable are qualitative or
quantitative.
 In general, there are more alternatives for statistical
analysis when the data are quantitative.
QUALITATIVE DATA
 Qualitative data are labels or names used to identify
an attribute of each element.
 Qualitative data use either the nominal or ordinal
scale of measurement.
 Qualitative data can be either numeric or
nonnumeric.
 The statistical analysis for qualitative data are rather
limited.
QUANTITATIVE DATA

Quantitative data indicate either how many or how much.

 Quantitative data are always numeric.
 Ordinary arithmetic operations are meaningful only with quantitative
data.
CROSS-SECTIONAL AND TIME SERIES DATA

 Cross-sectional data are collected at the same or

approximately the same point in time.
 Example: data detailing the number of building
permits issued in June 2000 in each of the counties
of Texas
 Time series data are collected over several time periods.
 Example: data detailing the number of building
permits issued in Travis County, Texas in each of the
last 36 months
STATISTICAL INFERENCE
 Statistical inference is the process of using data
obtained from a small group of elements (the sample)
to make estimates and test hypotheses about the
characteristics of a larger group of elements (the
population).
FREQUENCY, RELATIVE FREQUENCY AND PERCENT FREQUENCY:

A frequency count is a measure of the number of times that an event

occurs.

To compute relative frequency, one obtains a frequency count for the

total population and a frequency count for a subgroup of the
population. The relative frequency for the subgroup is:

Relative frequency = Subgroup count / Total count

The above equation expresses relative frequency as a proportion. It

is also often expressed as a percentage. Thus, a relative frequency of
0.50 is equivalent to a percentage of 50%.
Percentage frequency = (Subgroup count / Total count)*100
 FREQUENCY DISTRIBUTION
Guidelines for Selecting Number of Classes
 Use between 5 and 20 classes.
 Data sets with a larger number of elements usually require a larger number of
classes.
 Smaller data sets usually require fewer classes.
Guidelines for Selecting Width of Classes
 Use classes of equal width.
 Approximate Class Width = Largest Data Value  Smallest Data Value
Number of Classes
 EXAMPLE: HUDSON AUTO REPAIR
The manager of Hudson Auto would like to get a
better picture of the distribution of costs for engine
tune-up parts. A sample of 50 customer invoices has
been taken and the costs of parts, rounded to the
nearest dollar, are listed below.

91 78 93 57 75 52 99 80 97 62
71 69 72 89 66 75 79 75 72 76
104 74 62 68 97 105 77 65 80 109
85 97 88 68 83 68 71 69 67 74
62 82 98 101 79 105 79 69 62 73
EXAMPLE: HUDSON AUTO REPAIR

Frequency Distribution
If we choose six classes:
Approximate Class Width = (109 - 52)/6 = 9.5 10

Cost ($) Frequency

50-59 2
60-69 13
70-79 16
80-89 7
90-99 7
100-109 5
Total 50
EXAMPLE: HUDSON AUTO REPAIR

Relative Frequency and Percent Frequency Distributions

Relative Percent
Cost ($) Frequency Frequency
50-59 .04 4
60-69 .26 26
70-79 .32 32
80-89 .14 14
90-99 .14 14
100-109 .10 10
Total 1.00 100
Insights Gained from the Percent Frequency Distribution
 Only 4% of the parts costs are in the $50-59 class.
 30% of the parts costs are under $70.
 The greatest percentage (32% or almost one-third) of the parts costs are
in the $70-79 class.
 10% of the parts costs are $100 or more.
DOT PLOT

 One of the simplest graphical summaries of data is a dot plot.

 A horizontal axis shows the range of data values.
 Then each data value is represented by a dot placed above the axis.

.. .. . . .
. . .. .. .. .. . .
. . ..... .......... .. . .. . . ... . .. .
50 60 70 80 90 100 110

Cost ($)

EXAMPLE: HUDSON AUTO REPAIR

HISTOGRAM

 Another common graphical presentation of quantitative data

is a histogram.
 The variable of interest is placed on the horizontal axis.
 A rectangle is drawn above each class interval with its height
corresponding to the interval’s frequency, relative frequency,
or percent frequency.
 Unlike a bar graph, a histogram has no natural separation
between rectangles of adjacent classes.
EXAMPLE: HUDSON AUTO REPAIR

18
16
Frequency 14
12
10
8
6
4
2

50 60 70 80 90 100 110 Parts

Cost ($)
 CUMULATIVE DISTRIBUTIONS

 Cumulative frequency distribution -- shows the number of items with values less
than or equal to the upper limit of each class.
 Cumulative relative frequency distribution -- shows the proportion of items with
values less than or equal to the upper limit of each class.
 Cumulative percent frequency distribution -- shows the percentage of items with
values less than or equal to the upper limit of each class.
EXAMPLE: HUDSON AUTO REPAIR
 Cumulative Distributions

Cumulative Cumulative
Cumulative Relative Percent
Cost ($) Frequency Frequency Frequency
< 59 2 .04 4
< 69 15 .30 30
< 79 31 .62 62
< 89 38 .76 76
< 99 45 .90 90
< 109 50 1.00 100
 SCATTER DIAGRAM
 A scatter diagram is a graphical presentation of the relationship between two quantitative
variables.
 One variable is shown on the horizontal axis and the other variable is shown on the vertical
axis.
 The general pattern of the plotted points suggests the overall relationship between the
variables.
y

x
SCATTER DIAGRAM

x
EXAMPLE: PANTHERS FOOTBALL TEAM

Scatter Diagram
The Panthers football team is interested in investigating
the relationship, if any, between interceptions made and points
scored.

x = Number of y = Number of
Interceptions Points Scored
1 14
3 24
2 18
1 17
3 27
EXAMPLE: PANTHERS FOOTBALL TEAM

• The preceding scatter

diagram indicates a
positive relationship y
between the number of

Number of Points Scored

interceptions and the
number of points scored.
30
• Higher points scored are 25
associated with a higher
number of interceptions.
20
• The relationship is not 15
perfect; all plotted points
in the scatter diagram are
10
not on a straight line. 5
0 x
0 1 2 3
Number of Interceptions
 FREQUENCY DISTRIBUTION
 A frequency distribution is a tabular summary of data showing the frequency
(or number) of items in each of several non overlapping classes.
 The objective is to provide insights about the data that cannot be quickly
obtained by looking only at the original data.
 EXAMPLE: MARADA INN
Guests staying at Marada Inn were asked to rate the
quality of their accommodations as being excellent,
above average, average, below average, or poor. The
ratings provided by a sample of 20 quests are shown
below.

Below Average Average Above Average

Above Average Above Average Above Average Above Average
Below Average Below Average Average Poor Poor
Above Average Excellent Above Average
Average Above Average Average
Above Average Average
EXAMPLE: MARADA INN
 Frequency Distribution

Rating Frequency
Poor 2
Below Average 3
Average 5
Above Average 9
Excellent 1
Total 20
RELATIVE FREQUENCY DISTRIBUTION
 The relative frequency of a class is the fraction or proportion of the
total number of data items belonging to the class.
 A relative frequency distribution is a tabular summary of a set of
data showing the relative frequency for each class.
 The percent frequency of a class is the relative frequency multiplied
by 100.
 A percent frequency distribution is a tabular summary of a set of
data showing the percent frequency for each class.
EXAMPLE: MARADA INN

Relative Frequency and Percent Frequency Distributions

Relative Percent
Rating Frequency Frequency

Poor .10 10
Below Average .15 15
Average .25 25
Above Average .45 45
Excellent .05 5
Total 1.00 100
 BAR GRAPH
 A bar graph is a graphical device for depicting qualitative data.
 On the horizontal axis we specify the labels that are used for each of the classes.
 A frequency, relative frequency, or percent frequency scale can be used for the
vertical axis.
 Using a bar of fixed width drawn above each class label, we extend the height
appropriately.
 The bars are separated to emphasize the fact that each class is a separate
category.
EXAMPLE: MARADA INN

9
8
Frequency 7
6

 Bar5Graph
4
3
2
1
Rating
Poor Below Average Above Excellent
Average Average
 PIE CHART
 The pie chart is a commonly used graphical device for presenting relative
frequency distributions for qualitative data.
 First draw a circle; then use the relative frequencies to subdivide the circle into
sectors that correspond to the relative frequency for each class.
 Since there are 360 degrees in a circle, a class with a relative frequency of .25
would consume .25(360) = 90 degrees of the circle.
EXAMPLE: MARADA INN

Exc.
Poor
5%
10%
Below
Average
Above 15%
Pie Chart Average
45%
Average
25%

Quality Ratings
 EXAMPLE: MARADA INN
Insights Gained from the Preceding Pie Chart
 One-half of the customers surveyed gave Marada a quality rating of
“above average” or “excellent” (looking at the left side of the pie). This
might please the manager.
 For each customer who gave an “excellent” rating, there were two
customers who gave a “poor” rating (looking at the top of the pie). This
should displease the manager.
 CROSS TABULATION

Cross tabulation is a tabular method for summarizing the data for two variables simultaneously.
Cross tabulation can be used when:
 One variable is qualitative and the other is quantitative
 Both variables are qualitative
 Both variables are quantitative
 The left and top margin labels define the classes for the two variables.
EXAMPLE: FINGER LAKES HOMES
Cross tabulation
The number of Finger Lakes homes sold for each style and
price for the past two years is shown below.

Price Home Style

Range Colonial Ranch Split A-Frame Total

< $99,000 18 6 19 12 55
> $99,000 12 14 16 3 45

Total 30 20 35 15 100
 EXAMPLE: FINGER LAKES HOMES

Insights Gained from the Preceding Cross tabulation

 The greatest number of homes in the sample (19) are a split-level style and
priced at less than or equal to $99,000.
 Only three homes in the sample are an A-Frame style and priced at more
than $99,000.
Cross tabulation: Row or Column Percentages
 Converting the entries in the table into row percentages or column
percentages can provide additional insight about the relationship between
the two variables.
Row Percentages

Price Home Style

Range Colonial Ranch Split A-Frame Total

< $99,000 32.73 10.91 34.55 21.82 100

> $99,000 26.67 31.11 35.56 6.67 100

Note: row totals are actually 100.01 due to rounding.

EXAMPLE: FINGER LAKES HOMES

Column Percentages

Price Home Style

Range Colonial Ranch Split A-Frame

< $99,000 60.00 30.00 54.29 80.00

> $99,000 40.00 70.00 45.71 20.00

Total 100 100 100 100