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TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universität München Quality Engineering & Management Session 4.2: Descriptive vs. Inferential Statistics Dr. Holly Ott Production and Supply Chain Management Chair: Prof. Martin Grunow TUM School of Management Holly Ott 1 Quality Engineering & Management – Module 4

Descriptive vs Inferential Statistics

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  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Quality Engineering & Management

    Session 4.2: Descriptive vs. Inferential Statistics

    Dr. Holly Ott Production and Supply Chain Management

    Chair: Prof. Martin Grunow TUM School of Management

    Holly Ott 1 Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Learning Objectives

    Understand the purpose and importance of descriptive statistics. Review the concepts of histograms, box-and-whisker plots and the

    most common measurements of location and dispersion.

    Explain the purpose of inferential statistics and point estimates for a population parameter.

    Identify unbiased point estimates for the mean and standard deviation of a normally distributed random variable.

    Holly Ott 2 Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Descriptive Statistics

    Empirical methods to describe populations: arranging and summarizing data to obtain useful information

    Frequency Distribution: Histograms Box-and-Whisker Plots Measures of Location Measures of Dispersion

    Holly Ott 3

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Frequency Distribution - Histogram Fill-weights of

    deodorant in cans:

    Holly Ott 4 Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Histogram - Example A manufacturer of thermostats used in toasters and ovens was experiencing considerable returns from customers because the thermostats failed in calibration tests.

    The failures were traced to the width of a small key-way, called the dog-width, on a tiny shaft 3/8 in. in diameter. These key-ways were typically cut on a milling machine that had two cutting heads and the cut shafts were collected in a common hopper below the two cutters.

    The uniformity of the dog-widths had to be ensured in order to prevent calibration failures.

    Holly Ott 5

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Histogram - Example A sample of 100 shafts was taken from the hopper of one of the milling machines and the widths were measured and plotted in a histogram.

    The histogram typifies a bimodal distribution, which is a frequency distribution with two modes, or two peaks, indicating that two different distributions are mixed together in this populationone within the specification, and one almost outside the specification.

    Holly Ott 6

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Cumulative Frequency Distribution

    Holly Ott 7

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    The box-and-whisker (B&W) plot is another compact way of representing a population with variability, and it is especially useful when comparing several distributions with respect to their central value and dispersion.

    Holly Ott 8

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    Quality Engineering & Management Module 4

    Box-and-Whisker Plots

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Holly Ott 9 Quality Engineering & Management Module 4

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Measures of Location and Dispersion

    Holly Ott 10 Quality Engineering & Management Module 4

    Measures of Location Average: X-bar Median: X~ Mode: M Measures of Dispersion

    Standard Deviation Range

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Practice

    Now let's do an exercise together in descriptive statistics.

    Please complete the next "Practice" module before continuing with the lecture.

    Holly Ott Quality Engineering & Management Module 4