COMPLAINT RATE ANALYS

THIS SPREADSHEET PROVIDES A METHOD FOR DETERMINING WHETHER A R

SIGNIFICANTLY LARGER THAN THE CURRENTLY ASSUMED LO
The accuracy of this spreadsheet has been checked to be within +/ 0.1% of the va
(a wide variety of combinations of Complaint Rates, Confidence values, and Quan
This spreadsheet is being provided free of charge, but full copyright is othe
Version 1.02, Copyright 2012, by John Zorich (Zorich Consulting & Trai

Enter values into white cells, and then the green cell is ca

Desired % CONFIDENCE =
(This is equivalent to 100% "alpha",
where "alpha" is the % significance level of the statistical test.)

QUANTITY OF PRODUCT being analyzed =

(this could be a single lot or a month's shipment, etc.)

NUMBER OF COMPLAINTS =
received for that quantity of product.

This is calculated using the Beta Distribution approximation, as shown in the

Handbook of Statistical Distributions with Applications, by K. Krishnamoorthy,
published 2006 by Chapman & Hall (Boca Raton, FL, USA)
(to see the formula, go to www.Amazon.com, search for that book,
and then use Amazon's "Look Inside" tool to examine page 38;
the "one-side...lower limit" formula appears at the bottom of that page).

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LAINT RATE ANALYSIS
DETERMINING WHETHER A RECENT COMPLAINT RATE IS STATISTICALLY
E CURRENTLY ASSUMED LONG-TERM COMPLAINT RATE.
ecked to be within +/ 0.1% of the value given by Statgraphics Centurion XV
Rates, Confidence values, and Quantity numbers were used in that check).
e of charge, but full copyright is otherwise maintained by the author.
ohn Zorich (Zorich Consulting & Training, www.JohnZorich.com).

cells, and then the green cell is calculated for you.

Typically, this value is chosen to be 95% or 99 % confidence

95.00% (that is, an "alpha" significance level of 5% or 1% , respectively).

256

This data represents a complaint rate of 3.125 %.

This is the LOWER one-sided 95 % ' Exact ' confidence limit for the
3.125 % complaint rate shown above.

1.5643% If this limit is LARGER than the assumed long-term complaint rate,
then the 3.125 % complaint rate (shown above) is statistically
significantly larger than that assumed long-term complaint rate, at
an Alpha significance level of 5 %.

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