BNAD 276 Lecture Notes - Lecture 9: Statistical Process Control, Central Limit Theorem, Confidence Interval

• School: University of Arizona
• Department: Business Administration
• Course: BNAD 276
• Professor: Suzanne Delaney

Document Summary

How to make confidence interval smaller: decrease level of confidence, decrease variability (make standard deviation smaller, very careful assessment and measurement practices (improve reliability will minimize. Increase sample size (decrease variability) noise. ) (important) three skills to build confidence intervals: estimate a value but providing two scores between which we believe the true value lies. Statistical quality control: statistical techniques used to develop and maintain high-quality production, two approaches for statistical quality control: acceptance sampling & detection. Acceptance sampling: used at the completion of a production process or service. If a particular product does not conform to certain specifications, then it is either discarded or repaired: disadvantage: it is costly to discard or repair a product, disadvantage: the detection of all defective products is not guaranteed. Inspection occurs during the production process: goal is to determine whether the production process should be continued or adjusted before producing a large number of defects, types of variation: chance variation & assignable variation.