Inferential Stats

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Inferential statistics

• Inferential statistics draws conclusions on


unknown product or process parameters
based on information contained in a
sample.
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Inferential statistics
• Let's say that we want to test the validity of a
claim that the average service time in the fastfood
restaurant is no more than 3 minutes (min).
• Suppose we find that the sample average service
time (based on a sample of 500 people) is 3.5
min.
• We then need to determine whether this
observed average of 3.5 min is significantly
greater than the claimed mean of 3 min.

Inferential statistics
• Such procedures fall under the heading of
inferential statistics.
• They help us draw conclusions about the
conditions of a process.
• They also help us determine whether a
process has improved by comparing
conditions before and after changes
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Inferential statistics
• For example, suppose that the management of
the fast-food restaurant is interested in reducing
the average time to serve a customer.
• They decide to add two people to their service
staff. Once this change is implemented, they
sample 500 customers and find that the average
service time is 2.8 min.
• The question then is whether this decrease is a
statistically significant decrease or whether it is
due to random variation inherent to sampling.

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