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CHAPTER 06—STATISTICAL METHODS IN QUALITY MANAGEMENT

TRUE/FALSE

1. Statistics is a science concerned with the collection, organization, analysis, interpretation, and
presentation of data.

ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

2. The collection of all possible outcomes of an experiment is called an event.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

3. Probability is the likelihood that an outcome occurs.

ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

4. The sum of the probabilities over all possible outcomes must be between 0 and 1.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

5. Two events are independent if they have no outcomes in common.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

6. A random variable is a theoretical description of the outcome of an experiment.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

7. The Poisson distribution is closely related to the binomial distribution.

ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

8. The number of defects observed in a sample is an example of a continuous random variable.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Comprehension

9. The probability density function for the normal distribution is,

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

10. Often, the positively skewed data can be transformed to a normal distribution by using a mathematical
transformation such as taking logarithms.

ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Comprehension

11. Products are boxed in groups of 25. Drawing a sample of boxes and inspecting all units in the boxes
selected is an example of systematic sampling.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Methodology KEY: Bloom's: Comprehension

12. The median is the observation that occurs most frequently.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

13. The variance is the simplest measure of dispersion and is computed as the difference between the
maximum value and the minimum value in the data set.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

14. Distributions with values of coefficient of kurtosis (CK) greater than 3 are more flat with a wide
degree of dispersion.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

15. The Data Validation Toolpak in Microsoft Excel for Windows provides many procedures for
conducting statistical analyses.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Technology


TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge

16. A frequency distribution is a table that shows the number of observations in each of several
nonoverlapping groups.

ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge

17. The Histogram tool provides the basic statistical measures of location, dispersion, and shape.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Technology


TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge

18. One of the major disadvantages of the Histogram tool is that the results are not dynamically linked to
the data.

ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Technology


TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge
19. As the sample size increases, the standard error of the mean increases, all else being held constant.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

20. A confidence interval is a point estimate of a population parameter.

ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

21. All else being equal, as the confidence level increases, the confidence interval becomes larger
to provide higher levels of assurance that the interval contains the true population parameter.

ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

22. In hypothesis testing, the null hypothesis, H0, is assumed to be false in the absence of contradictory
data.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

23. Correlation is a measure of a linear or a non-linear relationship between two variables.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

24. The square of the correlation coefficient is called the coefficient of determination.

ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

25. In general, an experiment with m factors at k levels would have km combinations.

ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

26. When interactions are present in an experiment, main effects have little meaning.

ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

MULTIPLE CHOICE

1. Statistical methods help managers make sense of data and gain insight about the:
a. ability of using statistics and quality tools in daily work.
b. nature of variation in all processes.
c. nature of variation in the processes they manage.
d. technology used for data analysis and visualization.
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge
2. The collection of all possible outcomes of an experiment is called the _____.
a. event
b. population
c. sample space
d. random variable
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

3. The conditional probability of an event A given that event B is known is given by:
a.
.
b.
.
c.
.
d. .

ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

4. A _____ is a function that assigns a numerical value to every possible outcome in a sample space.
a. probability distribution
b. population parameter
c. sample statistic
d. random variable
ANS: D DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

5. A _____ can take on any real value over a specified interval of real numbers.
a. sample space
b. continuous random variable
c. discrete random variable
d. probability distribution
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

6. If a normal random variable has a mean = _____ and a standard deviation = _____, it is called a
standard normal distribution.

a. 1;0
b. 1;1
c. 0;0
d. 0;1
ANS: D DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

7. A perfume bottle is designed to have a capacity of 15 ounces. There is variation in the bottle
manufacturing process. Based on historical data, let’s suppose that the bottle capacity can be
reasonably modeled by a normal distribution with a mean of 15 ounces and a standard deviation of 0.2
ounces. What proportion of these bottles will have a capacity between 14.7 and 15.1 ounces?
a. 0.3830
b. 0.6247
c. 0.8664
d. 0.9876
ANS: B DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Probability Distributions KEY: Bloom's: Application

8. The _____ distribution models the time between randomly occurring events.

a. normal
b. Poisson
c. exponential
d. binomial
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

9. The component of statistical methodology that includes the collection, organization, and
summarization of data is called:
a. descriptive statistics.
b. probability distribution.
c. statistical inference.
d. predictive statistics.
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

10. _____ is the process of drawing conclusions about unknown characteristics of a population from
which data are taken.
a. Descriptive statistics
b. Regression analysis
c. Statistical inference
d. Correlation analysis
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

11. Which of the following is NOT a type of sampling scheme?


a. Stratified sampling
b. Biased sampling
c. Cluster sampling
d. Judgment sampling
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

12. Which of the following requires the opinion of an expert to determine the location and characteristics
of a definable sample group?
a. Judgment sample
b. Simple random sample
c. Systematic sample
d. Stratified sample
ANS: A DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge
13. Partitioning a population into hierarchical groups or levels, and selecting a sample from each group is
known as:
a. simple random sampling.
b. stratified sampling.
c. systematic sampling.
d. cluster sampling.
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

14. The sampling method where every item in the population has an equal probability of being selected is
called:
a. simple random sampling.
b. cluster sampling.
c. systematic sampling.
d. judgment sampling.
ANS: A DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

15. A typical group is selected from the population, and a random sample is taken from within the group.
This is an example of _____ sampling.
a. simple random
b. stratified
c. cluster
d. judgment
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Comprehension

16. If random samples are not used, _____ may be introduced.


a. quality control
b. bias
c. testing
d. probability
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

17. Any sampling procedure can result in _____ types of errors.


a. two
b. three
c. four
d. five
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

18. Any sampling procedure can result in two types of errors: _____ error and _____ error.
a. standard; variable
b. simple; conditional
c. random; measurement
d. sampling; systematic
ANS: D DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

19. Which of the following constitutes an approach to reducing sampling error?


a. Providing statistical training to workers at all organizational levels
b. Using user-friendly software for data analysis and visualization
c. Taking a larger sample from the population
d. Planning the sampling study carefully
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

20. A _____ is a subset of objects taken from the _____.


a. population; sample
b. cluster; strata
c. sample; population
d. sample space; experiment
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

21. Calculating the average value of 5 sample measurements of a door width is an example of:
a. descriptive statistics.
b. hypothesis testing.
c. regression analysis.
d. design of experiments.
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Comprehension

22. Which of the following is NOT a tool for descriptive statistics?


a. Frequency distribution
b. Regression analysis
c. Proportion
d. Histogram
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

23. Given here are a set of sample data: 12.0, 18.3, 29.6, 14.3, and 27.8. The sample standard deviation for
this data is equal to _____.
a. 62.895
b. 7.931
c. 7.093
d. 50.316
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Application

24. The _____ measures the degree of asymmetry of observations around the mean.

a. coefficient of correlation
b. coefficient of skewness
c. coefficient of kurtosis
d. coefficient of determination
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Methodology KEY: Bloom's: Knowledge

25. Group width =


a. (UL – LL)/Number of Groups.
b. Number of Groups/(UL – LL).
c. (UL + LL)/Number of Groups.
d. (UL – LL)(Number of Groups).
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Technology
TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge

26. A sample of size 16 is randomly selected from a population of size 90. Determine the standard error of
the mean if the population standard deviation equals 20.
a. 2.11
b. 4.16
c. 4.56
d. 5.00
ANS: C DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

27. Everything else remaining constant, when the sample size increases:
a. the variance decreases.
b. the variance increases.
c. the variance is unaffected.
d. the variance could increase or decrease.
ANS: A DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

28. The approximation to a normal distribution can be assumed for sample sizes of _____.

a. 15
b. 20
c. 25
d. 30 or more
ANS: D DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

29. Based on historical data, the diameter of a ball bearing is normally distributed with a mean of 0.527
cm and a standard deviation of 0.008 cm. Suppose that a sample of 18 ball bearings are randomly
selected from a very large lot. Determine the probability that the average diameter of a sampled ball
bearing is greater than 0.530 cm.
a. 0.2324
b. 0.4938
c. 0.5062
d. 0.0559
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application
30. A manager at a local manufacturing company has been monitoring the output of one of the machines
used to manufacture chromium shells. Past data indicate that if the machine is functioning properly,
the length of the shells produced by this machine can be modeled as being normally distributed with a
mean of 118 centimeters and a standard deviation of 6.3 centimeters. Suppose 10 shells produced by
this machine are randomly selected. What is the probability that the average length of these 10 shells
will be between 116 and 120 centimeters when the machine is operating “properly?”
a. 0.2709
b. 0.2943
c. 0.9656
d. 0.6826
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

31. A travel article reasearcher randomly sampled 250 adult residents of Illinois and asked each resident if
he/she planned to vacation outside of Illinois this coming summer. Fifty-six of these adults responded
that they plan to vacation outside of Illinois. What is the 95% confidence interval for the population
proportion of adult residents of Illinois who plan to vacation outside of Illinois this coming summer?
a. (0.178, 0.318)
b. (0.246, 0.250)
c. (0.172, 0.276)
d. (0.142, 0.354)
ANS: C DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

32. A government report gives a 99% confidence interval for the proportion of welfare recipients who
have been receiving welfare benefits for more than 5 years to be 21%  4.5%. Which of the following
intervals could not be a 95% confidence interval for the proportion of welfare recipients who have
been receiving welfare benefits for more than 5 years?
a. 21%  4.2%
b. 21%  3.76%
c. 21%  3.9%
d. 21%  4.8%
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

33. A testing engineer in a light bulb factory is planning a study to estimate the average life of a large
shipment of light bulbs. The engineer wants to estimate the average life within plus or minus 16 hours
with 95 percent confidence. Assuming a process standard deviation of 90 hours, determine the sample
size for this study.
a. 7
b. 43
c. 58
d. 122
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

34. _____ involve(s) drawing inferences about two contrasting propositions relating to the value of a
population parameter, one of which is assumed to be true in the absence of contradictory data.
a. Probability distributions
b. Hypothesis testing
c. Descriptive statistics
d. Predictive statistics
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

35. The rejection region is chosen so that the probability of the test statistic falling into it, if H0 is true, is
_____.

a.
b.
c.
d.
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

36. _____ is a methodology for drawing conclusions about equality of means of multiple populations.
a. Quality analysis
b. Analysis of variance
c. Correlation analysis
d. Regression analysis
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

37. In ANOVA, by dividing the mean square between groups by the mean square within groups, a(n)
_____ statistic is computed.

a. t
b. z
c. F
d. R2
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

38. Suppose that a scatter diagram depicts a relationship between the two variables that can be
summarized by a straight line. The correlation coefficient is computed and results in a value of -0.73.
Which of the following is NOT TRUE?
a. There is a linear relationship between the two variables.
b. In general, an increase in one variable is associated with an increase in the other variable.
c. In general, an increase in one variable is associated with a decrease in the other variable.
d. Even though the correlation coefficient is less than zero, it still communicates the strength
of the linear relationship.
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

39. Three scatter diagrams are given below. How many of the diagrams present data that can be described
by a linear relationship and, therefore, justifiably summarized by the correlation coefficient?

Plot A
Plot B

Plot C

a. Plot A
b. Plot B
c. Plot A and Plot B
d. Plot A and Plot C
ANS: D DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Comprehension

40. In regression analysis, _____ measures the proportion of the variation in the dependent variable that is
explained by the independent variable(s).

a. coefficient of correlation
b. an F statistic
c. coefficient of determination
d. regression equation
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

41. _____ is a test or series of tests that enables the experimenter to compare two or more methods to
determine which is better or determine levels of controllable factors to optimize the yield of a process
or minimize the variability of a response variable.
a. Designed experiment
b. Hypothesis testing
c. Kurtosis
d. Regression
ANS: A DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

42. One of the most common types of experimental designs in which all combinations of levels of each
factor are considered is called a(n) _____ experiment.
a. combination
b. factorial
c. interaction
d. simple
ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

43. In a factorial experiment, each combination of different levels of the factor is called a(n) _____.
a. main effect
b. response
c. treatment
d. interaction
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

44. An experiment that evaluates the effect of two temperatures (100 and 200 degrees F) and two reaction
times (45 and 95 minutes) on process yield has _____ possible combinations to test.
a. 2
b. 4
c. 6
d. 8
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Application

45. In a designed experiment, a(n) _____ measures the difference that a factor has on the response.
a. main effect
b. factorial
c. treatment
d. interaction
ANS: A DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

ESSAY

1. What is probability? What are its characteristics?

ANS:
Probability is the likelihood that an outcome occurs.

Suppose we label the n outcomes in a sample space as O1, O2, …, On, where Oi represents the ith
outcome in the sample space. Let P(Oi) be the probability associated with the outcome Oi. Then:

• The probability associated with any outcome must be between 0 and 1, or


for each outcome Oi

• The sum of the probabilities over all possible outcomes must be 1.0, or
P(O1) + P(O2) + ... + P(On) = 1

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

2. What are the rules that apply when calculating probabilities of events?

ANS:
The following rules apply to calculating probabilities of events:

Rule 1: The probability of any event is the sum of the probabilities of the outcomes that compose that
event.
Rule 2: The probability of the complement of any event A is P(Ac) = 1 – P(A).
Rule 3: If events A and B are mutually exclusive, then P(A or B) = P(A) + P(B).
Rule 4: If two events A and B are not mutually exclusive, then P(A or B) = P(A) + P(B) – P(A and B).
Here, (A and B) represents the intersection of events A and B; that is, all outcomes belonging to both A
and B.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Basic Probability Concepts KEY: Bloom's: Knowledge

3. Define binomial and Poisson distributions. State their probability functions.

ANS:
Binomial Distribution:

The binomial distribution describes the probability of obtaining exactly x “successes” in a sequence of
n identical experiments, called trials.
The binomial probability function is given by the following formula:
x = 0, 1, 2, ..., n
where p is the probability of a success, n is the number of items in the sample, and x is the number of
items for which the probability is desired (0, 1, 2, …, n).

Poission Distribution:

The second discrete distribution often used in quality control is the Poisson distribution. It used to
calculate the number of occurrences of an event over a specified interval of time or space. The Poisson
probability distribution is given by,

where = expected value or average number of occurrences, x = 0, 1, 2, 3,... , and e = 2.71828, a


constant.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Knowledge

4. Briefly discuss the relation between exponential distribution and Poisson distribution with an example.

ANS:
The exponential distribution is related to the Poisson distribution: if the distribution of the time
between events is exponential, then the number of events occurring during an interval of time is
Poisson.
For example, if the average time between the arrivals of customers in a departmental store is
exponential with a mean of 2 minutes, then the average number of arrivals per minute is Poisson with a
mean of 1/2 arrivals/minute.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Probability Distributions KEY: Bloom's: Comprehension

5. The times (in minutes) required by a sample of 15 students to complete a class assigment are given
below:
45, 42, 56, 54, 40, 37, 39, 45, 49, 43, 45, 50, 49, 55, 48

Using Excel functions and calculate the mean, median, mode, range, sample variance, and sample
standard deviation.

ANS:
Using Excel 2010 functions,

Mean = AVERAGE(45, 42, 56, ..., 48) = 46.47


Median = MEDIAN(45, 42, 56, ..., 48) = 45
Mode = MODE.SNGL(45, 42, 56, ..., 48) = 45
Range = MAX(45, 42, 56, ..., 48) - MIN(45, 42, 56, ..., 48) = 19
Sample variance = VAR.S(45, 42, 56, ..., 48) = 33.84
Sample standard deviation = STDEV.S(45, 42, 56, ..., 48) = 5.82

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Methodology KEY: Bloom's: Application

6. In Excel’s Histogram tool, how are bins defined?

ANS:
For discrete values, a column of these values is set up in the spreadsheet for the bin range and
specified in the Bin Range field. For numerical data that have a many different discrete values with
little repetition or are continuous, bins are defined by specifying
1. the number of bins,
2. the width of each bin, and
3. the upper and lower limits of each bin.
It is important to remember that the bins may not overlap so that each value is counted in exactly one
group.
The bins should be defined after examining the range of the data. Generally, between 5 to 15 bins
should be chosen, and the range of each should be of equal width.

DIF: Difficulty: Moderate NAT: BUSPROG: Technology


TOP: A-Head: Statistical Analysis with Microsoft Excel KEY: Bloom's: Knowledge

7. What is a sampling distribution? State the sampling distributions of and p for finite populations.

ANS:
A sampling distribution is the distribution of a statistic for all possible samples of a fixed size. In
quality, the sampling distributions of , the sample mean and p, the sample proportion, are of the most
interest.

Sampling distribution of :
When using simple random sampling, the expected value of is the population mean .
The standard deviation of (often called the standard error of the mean) is given by the formula,

for finite populations.

Sampling distribution of p:

The expected value of p is , the population proportion.

The standard deviation of p is, for finite populations.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge

8. State the steps involved in a hypothesis test.

ANS:
A hypothesis test involves the following steps:

1. Formulate the hypotheses to test.


2. Select a level of significance.
3. Determine a decision rule on which to base a conclusion.
4. Collect data and calculate a test statistic.
5. Apply the decision rule to the test statistic and draw a conclusion.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Knowledge
9. A manager was assigned the task of investigating the error in payments for routine purchases made by
the purchasing department. The manager randomly selected 12 payments, investigated them
thoroughly, and determined the payment error for each of these payments. The payment error was
defined as the difference between the amount paid and what should have been paid. The payment
errors determined for these selected payments were as follows:

$17 $25 $14 -$10 $20 $40


$35 $30 $28 $22 $15 $16

a. What is the 95% confidence interval for the population mean payment error?
b. Suppose a recent company report inferred that the mean payment error may be running as high as
$25. That led the manager to test the null hypothesis that the population mean payment error is
equal to $25 versus the alternative that the population mean payment error is not equal to $25.
Using a level of significance equal to 0.01, perform this hypothesis test.
c. Suppose another manager used this same data to test the null hypothesis that the population mean
payment error is less than or equal to $15 versus the alternative that the population mean payment
error is greater than $15. What is the test statistic for this hypothesis testing situation? What is the
critical value at a level of significance equal to 0.01? What is the conclusion?

ANS:
a. The 95% confidence interval:

= 21 + 8.11 = (12.89, 29.11)

b. Computing the test statistic, we have

Since this is not less than the lower-tail critical value of -3.106, the manager would not reject the
null hypothesis.

c. Computing the test statistic, we have

Since this is less than the upper-tail critical value of 2.718, the manager would not reject the null
hypothesis.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Statistical Inference KEY: Bloom's: Application

CASE

1. What are the typical soldering defects in a wave soldering process of a PCA-Encoder?

ANS:
Typical soldering defects are blowholes (insufficient solder) and bridges (solder between two joints).

DIF: Difficulty: Easy NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

2. In which of the following companies, a high level of soldering defects was observed, necessitating 100
percent inspection for all circuit boards?
a. GE Fanuc Company
b. Hewlett-Packard
c. Branch-Smith, Inc.
d. Berton Card Company

ANS:
B

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

3. What are the aspects of the wave soldering process that might affect the resulting quality of the
PCA-Encoders?

ANS:
The quality engineers conducted a detailed study on the solder defects to understand what aspects of
the wave soldering process might affect the resulting quality. These were identified as
1. Conveyor speed
2. Conveyor angle
3. Solder bath temperature
4. Solder wave height
5. Vibration of wave
6. Preheater temperature
7. Air knife
8. Acid number (solid content in the flux), which is difficult to control because of environmental
conditions

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

4. To improve the quality of the wave soldering process through design of experiments, _____ factors at
_____ levels were selected for the experiment.
a. seven; two
b. six; three
c. seven; three
d. three; two

ANS:
C

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge
5. Briefly explain how the experiment was conducted.

ANS:
A full factorial experiment would take 1,458 trials to conduct, which was not deemed to be practical.
From statistical theory in the design of experiments, the seven main effects could be estimated by
conducting only 18 trials as shown in the below table. The experimental outcomes (response) were the
number of defective solder joints in a frame (352 joints). Each experiment was repeated three times.

DIF: Difficulty: Challenging NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

6. Using _____, it was observed that bath temperature, wave height, and omega had a significant effect
on the soldering defects.
a. hypothesis testing
b. cluster sampling
c. descriptive statistics
d. analysis of variance

ANS:
D

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

7. Why were additional experimental designs conducted to reduce soldering defects in the process?

ANS:
The predicted average and the result of a confirmatory experiment were not sufficient to eliminate
inspection completely, so additional experimental designs were conducted to reduce defects.
DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

8. Explain how the new experiment was conducted to reduce soldering defects in the process.

ANS:
The next experiment considered the results of the first experiment and some of the uncontrollable
factors. However, the different levels of the significant factors from the first experiment were selected
in such a way that the new levels were allowed to vary around the optimum level of the first
experiment. Based on the results of these additional experiments, new optimum levels of factors were
identified and implemented with significant improvements.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Improving Quality of a Wave Soldering Process Through Design of Experiments
KEY: Bloom's: Knowledge

9. What was the objective of the Black Belt Project #P52320 investigated by a team at the GE Fanuc
manufacturing plant?

ANS:
The objective of the project was to evaluate Printed Wire Board (PWB) Fabricated Board Finishes to
determine if the high-priced nickel-gold (Ni-Au) finished boards that were being used were necessary
as mounting platforms for fine pitch surface-mounted devices (SMDs) or for fine-pitched Ball Grid
Array (BGA) electronic controller boards.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

10. What are the tools and databases identified by the team to be used in the study?

ANS:
The tools included two statistical/spreadsheet software packages (Minitab and Excel) and a plant-wide
integrated database (SAP) that contained information on board characteristics, usage, specifications,
costs, and so on.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

11. Based on a _____-step process flowchart, it was decided that the analysis would require the use of a
moderately complex experimental design in the Six Sigma project.
a. 27
b. 28
c. 29
d. 30

ANS:
C

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

12. The team identified _____ characteristics (Xs, or independent variables) that were considered
important to measure during the experiment for each of the _____ finish types (Ys, or dependent
variables).
a. 3; 13
b. 29; 8
c. 8; 6
d. 13; 3

ANS:
D

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

13. What was the primary hypothesis stated by the team? What is the additional hypothesis investigated?

ANS:
The primary hypothesis was that no significant differences in numbers of defects would be incurred in
manufacturing the boards, regardless of finish. In addition, a hypothesis that no significant interaction
effects existed between suppliers, coatings, and any of the 13 characteristics considered essential for
quality board functioning was investigated.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

14. Of 15 ANOVA analysis runs performed on the 13 experimental variables that were measured in the
Six Sigma project, why did 8 experimental variables showed no significance?

ANS:
Of 15 ANOVA analysis runs performed on the 13 experimental variables that were measured, eight
showed no significance, primarily because those variables had zero defects.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

15. What is the conclusion arrived by the team of the Six Sigma project at GE Fanuc manufacturing plant?

ANS:
From the analyses done by the team, the summary conclusion was that GE Fanuc did not need
nickel-gold boards for fine pitch SMD.

DIF: Difficulty: Moderate NAT: BUSPROG: Analytic


TOP: A-Head: Applying Statistical Analysis in a Six Sigma Project at GE Fanuc
KEY: Bloom's: Knowledge

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