Six Sigma for Managers, Second Edition (Briefcase Books Series) by Brue Greg

Author:Brue, Greg
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2015-04-19T04:00:00+00:00

In the case of the end cap described in the sidebar, testing the hypothesis proved there was a difference of statistical and practical significance in the defect rate when the warping was below a certain dimension. Statistical significance is calculated as the probability that an observed effect is occurring by chance. It’s a statement of confidence or a risk of a difference detected in a sample of data not found in another data sample. For example, one might state there’s a 95% confidence that if an end cap warped above a certain dimension it would be defective, with a 5% chance of being wrong. Practical significance relates the difference to a business or financial benefit. In our example, the practical difference is that reducing the warping to below that certain dimension reduced the defect rate from 200,000 ppm to 100 ppm. A difference can be of practical but not statistical significance and, conversely, a difference can be of statistical but not practical significance.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.