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Chapter 3 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery.

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Learning Objectives

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Preliminaries
No two units of product produced by a process are
identical. Some variation is inevitable. Statistics
is the science of analyzing data and drawing
conclusions, taking variation in the data into
account.
There are several graphical methods that are very
useful for summarizing and presenting data. One
of the most useful graphical techniques is the
stem-and-leaf display.
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3.1 Describing Variation
Stem-and-Leaf Display

For explanations; see the next display. Easy to


find percentiles of the data; see page 69

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Stem-and-Leaf Display
To construct the stem-and-leaf plot, we could select the values1, 2, 3, 4, and 5 as the
stems. However, this would result in all 40 data values being compacted into only five
stems, the minimum number that is usually recommended. An alternative would be to
split each stem into a lower and an upper half, with the leaves 0–4 being assigned to the
lower portion of the stem and the leaves 5–9 being assigned to the upper portion. Figure
3.1 is the stem-and-leaf plot generated by Minitab, and it uses the stem-splitting strategy.
The column to the left of the stems gives a cumulative count of the number of
observations that are at or below that stem for the smaller stems, and at or above that
stem for the larger stems. For the middle stem, the number in parentheses indicates the
number of observations included in that stem. Inspection of the plot reveals that the
distribution of the number of days to process and pay an employee health insurance
claim has an approximately symmetric shape, with a single peak. The stem-and-leaf
display allows us to quickly determine some important features of the data that are not
obvious from the data table. For example, Fig. 3.1 gives a visual impression of shape,
spread or variability, and the central tendency or middle of the data (which is close to
35).

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Time Series Plot
Although the stem-and-leaf display is an
excellent way to visually show the variability in
data, it does not take the time order of the
observations into account. Time is often a very
important factor that contributes to variability in
quality improvement problems. We could, of
course, simply plot the data values versus time;
such a graph is called a time series plot or a run
chart.
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Plot of Data in Time Order
Marginal plot
produced by
MINITAB

Also called a run chart

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Histograms – Useful for large data sets

Group values of the variable into bins, then count the


number of observations that fall into each bin
Plot frequency (or relative frequency) versus the values of
the variable
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Additional Minitab Graphs

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Numerical Summary of Data
Sample average:

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The Standard Deviation

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Interquartile Range
• In descriptive statistics, the interquartile
range (IQR), also called the midspread or
middle 50%, or technically H-spread, is a
measure of statistical dispersion, being equal
to the difference between 75th and 25th
percentiles. (Ref: Wikipedia)
• IQR helps figure out how precise data is. It
eliminates outliers. (Ref: Khan Academy)

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The Box Plot
(or Box-and-Whisker Plot)

•Box-and-Whisker Plots enclose the interquartile


range of the data that has the median* displayed
within. It also displays “whiskers”; showing the
extreme observations in the sample.
*The fiftieth percentile of the data distribution is called the sample median.
The median can be thought of as the data value that exactly divides the sample
in half, with half of the observations smaller than the median and half of them
larger.

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The Box Plot
(or Box-and-Whisker Plot)

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Comparative Box Plots

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Probability Distributions

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Sometimes called a Sometimes called a
probability mass function probability density function

Will see many examples in the text

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The mean is the point at which the distribution exactly “balances”.

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The mean is not necessarily the 50th percentile of the distribution
(that’s the median)
The mean is not necessarily the most likely value of the random
variable (that’s the mode)

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3.2 Important Discrete Distributions
The Hypergeometric Distribution

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Discrete distributions are used frequently in designing acceptance
sampling plans – see Chapter 15

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The Binomial Distribution

Basis is in Bernoulli trials

The random variable x is the number of successes out of n


Bernoulli trials with constant probability of success p on each
trial
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Binomial Distributions

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The Poisson Distribution

Frequently used as a model for count data

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The Negative Binomial Distribution

The random variable x is the number of Bernoulli trials upon


which the rth success occurs
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•The negative binomial distribution is also
sometimes called the Pascal distribution
•When r = 1 the negative binomial distribution is
known as the geometric distribution
• The geometric distribution has many useful
applications in SQC

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Geometric Distribution

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3.3 Important Continuous Distributions
The Normal Distribution

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The Central Limit Theorem

Practical interpretation – the sum of independent random


variables is approximately normally distributed regardless of
the distribution of each individual random variable in the sum

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The Lognormal Distribution

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The Exponential Distribution

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Relationship between the Poisson and exponential distributions

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Lack-of-memory property

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The Gamma Distribution

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When r is an integer, the gamma distribution is the result of summing r
independently and identically exponential random variables each with
parameter λ.
The gamma distribution has many applications in reliability engineering.

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The Weibull Distribution

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When β = 1, the
Weibull reduces to
the exponential

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An Application of the Weibull Distribution

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3.4 Probability Plots

• Determining if a sample of data might reasonably be


assumed to come from a specific distribution
• Probability plots are available for various
distributions
• Easy to construct with computer software
(MINITAB)
• Subjective interpretation

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Normal Probability Plot

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The Normal Probability Plot on Standard Graph Paper

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Other Probability Plots
• What is a reasonable choice as a probability model
for these data?

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3.5 Some Useful Approximations

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Learning Objectives

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