Managing For Quality and Performance Excellence 10th Edition Evans Solutions Manual Download

Managing for Quality and Performance
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CHAPTER 6
Statistical Methods in Quality Management
Teaching Notes
This chapter describes concepts of statistics, statistical thinking, statistical methodology, sampling,
experimental design, and process capability. Students should be encouraged to take a “big picture”
perspective on this framework, rather than the approach of: “How do I get the right answer?”
Although this chapter reviews many of the basic concepts and techniques of statistics that are
relevant to the technical areas of statistical process control (SPC), it is by no means comprehensive.
Students should be encouraged to consult a statistics textbook for further insights on the topics in
this chapter. These topics are typically covered in business or engineering statistics course that
students should have had prior to taking a course using this text. Key objectives for this chapter
include:
1
Statistical Methods in Quality Management 2
• To establish the importance of statistics as the "bridge" between quality of design and
quality of conformance. The proper use of statistics is highlighted as a quality improvement
tool.
• To help students appreciate the importance of statistical thinking in order to understand

inter-related processes, process variation, and the need to reduce it in order to assure quality
in operations.
• To review definitions and concepts of statistics, and relate them to quality control
applications. Spreadsheet techniques for statistical analysis with Excel® software are also
emphasized.
• To introduce the use of Design of Experiments (DOE) as a tool for drawing conclusions
regarding controllable process factors and/or comparing methods for process development
or improvement.
• To help students to understand the concept of process capability and its effects on quality
and conformance to specifications.
• To introduce the concept of statistical measurement of service quality
The Instructor’s Resource folder on the website for this chapter has a number of Baldrige video
clips which give an inside view of organizations that have received the Baldrige award. A couple
of those that are especially appropriate for this chapter, have scenes that show how statistical
thinking and concepts can enhance an organization’s quest for world-class quality.
ANSWERS TO QUALITY IN PRACTICE QUESTIONS
Modern Applications of Statistics in Quality
1. Statistics should be taught to, and understood by, employees in all functions and all levels
of an organization because statistics is the foundation for quality design, improvement,
and control. There are numerous adages which have a ring of truth to them, such as
“What gets measured, gets done.” Regardless of the function or organizational level,
design, improvement, and control systems are essential to good management.
2. The numbered examples [6.1 – 6-24] in this chapter have been classified by type of
statistical application in quality based on the ideas in this Quality in Practice feature.
They have also been matched up, in a general sense, with the type of industry in which
the application resides. E.g. Product design and reliability, process improvement, as well
as electronics, medical services, etc. See spreadsheet QIP-ModernStatApps.xlsx in the
Instructor’s Resource folder.
Improving Quality of a Wave Soldering Process Through the Design of Experiments
1. The first experimental design at the HP plant did not achieve the true optimum combination
of factors, because not all combinations were tested. It is theoretically possible that a better
combination of factors exists among those that were not tested. Thus, the ones that were
tested could be considered a “random sampling” of all of the possibilities. It is also likely
that some interaction effects were at work, so some of the combinations that produced a
higher number of defects had to be eliminated.
2. Experimental design allows the experimenter to systematically evaluate two or more

methods to determine which is better, or to determine the levels of controllable factors to
optimize process yields or minimize variation of a response variable. Therefore, it is
generally faster and more efficient than using one at a time, trial-and-error methods.
ANSWERS TO REVIEW QUESTIONS
1. Statistics is a science concerned with “the collection, organization, analysis, interpretation,

and presentation of data.” Statistics is essential for quality and for implementing a
continuous improvement philosophy. Statistical methods help managers make sense of
data and gain insight about the nature of variation in the processes they manage. All
managers, supervisors, and production and clerical workers should have some knowledge
of basic statistical methods and applications.
2. In statistical terminology, an experiment is a process that results in some outcome. The

outcome of an experiment is a result that we observe. The collection of all possible
outcomes of an experiment is called the sample space. A sample space may consist of a
small number of discrete outcomes or an infinite number of outcomes. Probability is the
likelihood that an outcome occurs.
3. 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.
4. The multiplication rule of probability is: P(A and B) = P(A | B) P(B) = P(B | A) P(A),
where P(A | B) reads as the conditional probability of A, given B. Conditional probability
is the probability of occurrence of one event A, given that another event B is known to be
true or have already occurred.
Two events A and B are independent if P(A | B) = P(A). If two events are independent,
then we can simplify the multiplication rule of probability in equation (6.2) by
substituting P(A) for P(A | B): P(A and B) = P(B) P(A) = P(A)P(B).
5. The two most important types of probability distributions are discrete and continuous
distributions. Under the discrete category, the binomial and Poisson distributions are the
most important. The binomial distribution calculates the probability of exactly x
successes in a sequence of n identical experiments, called trials. The Poisson distribution
is closely related to the binomial. It is derived by allowing the sample size n to become
very large, while the probability of success or failure (p) to become very small
(approaching 0).
A curve that characterizes outcomes of a continuous random variable is called a

probability density function, and is described by a mathematical function f(x). For
continuous random variables, it does not make mathematical sense to attempt to define a
probability for a specific value of x because there are an infinite number of values.
Sample statistics such as , s, and p are random variables that have their own
probability distribution, mean, and variance. Thus, different samples will produce
different estimates of the population parameters. These probability distributions are
called sampling distributions. A sampling distribution is the distribution a statistic for
all possible samples of a fixed size. In quality, the sampling distributions of and p are
of the most interest.
6. A probability distribution can be either discrete or continuous, depending on the nature of

the random variable it models. For discrete probability distributions, a complete, finite
number of outcomes and their associated probabilities of occurrence can be listed. These
outcomes are called a list of mutually exclusive and collectively exhaustive outcomes.
A continuous random variable is defined over one or more intervals of real numbers, and
therefore, has an infinite number of possible outcomes. A curve that characterizes
outcomes of a continuous random variable is called a probability density function, and is
described by a mathematical function f(x). For continuous random variables, it does not
make mathematical sense to attempt to define a probability for a specific value of x
because there are an infinite number of values. Probabilities are only defined over
intervals.
Discrete variables are used to measure whether tangible or intangible output from a process
is acceptable or not acceptable (good or bad; defective, or not defective). Discrete variables
are often used to classify the quality level of customer service. Was the patient in the
hospital satisfied or dissatisfied; customer compliments versus complaints for a tour firm;
did the marketing research firm accurately or inaccurately prepare the report? Continuous
variables are used to measure quantifiable characteristics, such as time, temperature,

weight, dimensions (in inches or millimeters). They are only limited by the accuracy of the
measuring instrument being used (for example, atomic clocks can measure time to
millionth of a second or finer accuracy). Thus, in quality control applications, continuous
variables are used to measure dimensions of parts in an automotive supplier, temperature
in drying processes, or times required to service each customer in a bank.
7. The three basic elements of statistical methodology are descriptive statistics, statistical
inference, and predictive statistics. The methods for the efficient collection, organization,
and description of data are called descriptive statistics. Statistical inference is the process
of drawing conclusions about unknown characteristics of a population from which the
data were taken. Predictive statistics is used to develop predictions of future values based
on historical data. The three differ in approach, purpose, and outcomes. Descriptive
statistics simply summarize and report on existing conditions, inference helps to make
decisions about population characteristics based on sample data. Predictive statistics
attempt to look into the future and state what will be the results, if certain assumptions
hold. All three of these can be important to a manager who is trying to describe the
current characteristics of a process, or make inferences about whether a process is in
control, or predict future values of instrument readings in order to determine whether it is
properly calibrated.
8. Methods of sample selection, or sampling schemes, include: simple random sampling,

stratified sampling, systematic sampling and cluster sampling. Simple random sampling is
useful where one needs to gather information from a moderately large, homogeneous
population of items. For example, if a MBA director wished to find out the attitudes of 300
MBA students toward various policies, procedures, and services provided to the students,
s(he) might use a simple random sample to determine whom the survey should be sent to.
An automobile insurance company could use a stratified sample to determine accident rates
of customers, stratified according to their ages. An auditor might use a systematic sampling
to sample accounts receivable records by choosing every 50th record out of a file cabinet.
Cluster sampling could be used by management analysts within city government to
determine satisfaction levels of residents on a neighborhood by neighborhood (cluster)
basis. Judgment sampling should be avoided, except as a way to gather preliminary,
impressionistic data before beginning a true sampling study.
9. Any sampling procedure can result in two types of errors: sampling error and systematic
error. Sampling error occurs naturally and results from the fact that a sample may not
always be representative of the population, no matter how carefully it is selected. The only
way to reduce sampling error is to take a larger sample from the population. Systematic
errors, however, usually result from poor sample design and can be reduced or eliminated
by careful planning of the sampling study.
Systematic errors in sampling can come from bias, non-comparable data, uncritical
projection of trends, causation, and improper sampling. They may be avoided by
approaches discussed in the chapter. Basically, careful planning of the sampling study,
awareness of possible systematic error causes, and careful execution of the study can help
to avoid most of the common errors listed above.
10. A population is a complete set or collection of objects of interest. A sample is a subset of

objects taken from a population.
11. Measures of location are essentially those that focus on “central tendency,” such as the
mean, median, and mode. The mean is the average, the median is the point above and
below which 50 percent of the values of a sample or population fall, and the mode is the
most commonly occurring value.
12. Measures of dispersion are used to indicate the degree of “scatter” of data. They include
the range, variance, and standard deviation. The latter two statistics measure scatter
around the mean of the sample or population.
13. The proportion, usually denoted as p, is used to measure the fraction of data that have a
certain characteristic. For example, the fraction of respondents that is female or male.
Proportions are key descriptive statistics for categorical data, such as defects or errors.
Such categorical data are not numerical, but rely on counting items that fall into
categories of interest. Thus, statistics such as means and variances are not appropriate,
where proportions are involved.
14. The standard error of the mean is the (estimated) standard deviation of the population 
divided by n or ( / n ). The standard deviation is, of course, a measure of variability
within a population, where the standard error of the mean is a measure of the standard
deviation within the sampling distribution. Thus they are both types of standard
deviation.
15. The central limit theorem is extremely useful in that it states (approximately) that a
sampling distribution can be defined as the distribution obtained by taking a large number
of samples of size n from any population with a mean µ and a standard deviation, , and
calculating their means. The mean of the sample means for this probability distribution
will approach µ, and the standard deviation of the distribution will be  / n , as larger
and larger sample sizes are taken. The CLT is extremely important in any SQC
techniques that require sampling.
16. Microsoft Excel provides data analysis tools, called the Analysis ToolPak, that are useful
in complex statistical analyses. You provide the data and parameters for each analysis;
the tool uses the appropriate statistical functions and then displays the results in an output
table. Some tools generate charts in addition to output tables. To view a list of available
analysis tools in Excel, click on Data Analysis in the Analysis group under the Data tab
in the Excel menu bar. The Descriptive Statistics module provides all of the descriptive
statistical measures, mentioned in the answers to previous questions, except for
proportional measures. In addition, advanced tools, such as ANOVA, regression analysis,

confidence intervals, and others are also available.
17. A confidence interval (CI) is an interval estimate of a population parameter that also
specifies the likelihood that the interval contains the true population parameter. This
probability is called the level of confidence, denoted by 1 - , and is usually expressed as
a percentage. Used together, these statistical tools can help clarify what we know and
don’t know about a population, based on taking one or more samples. The sampling
distribution provides the theoretical distribution relating the population to samples drawn
from it. By testing hypotheses, we can get answers to questions about the likelihood of
population parameters having certain characteristics, based on their samples. With
confidence intervals, we can determine the probability of population parameters falling
within a given range, based on their sample statistics.
18. Some applications of hypothesis testing that might be applied to the topics in Chapters 3,
4, and 5 are varied. For example, a hypothesis might be tested concerning the question of
whether customers are more likely to prefer one brand over another, for similar products,
in Chapter 3. In Chapter 4 a hypothesis of whether employee morale in a particular
department has increased, might be tested. In the case of processes in Chapter 5, a
hypothesis test might be performed to determine if the time required to complete an
operation has been significantly decreased as the result of a methods change.
19. ANOVA is a methodology for drawing conclusions about equality of means of multiple
populations. In its simplest form – one-way ANOVA – it compares means of observed
responses of several different levels of a single factor. ANOVA tests the hypothesis that
the means of all populations are equal against the alternative hypothesis that at least one
mean differs from the others.
20. Correlation is a measure of a linear relationship between two variables, X and Y, and is
measured by the (population) correlation coefficient. Correlation coefficients will range
from -1 to +1. A correlation of 0 indicates that the two variables have no linear
relationship to each other. Thus, if one changes, we cannot reasonably predict what the
other variable might do using a linear equation (we might, however, have a well-defined
nonlinear relationship). Regression analysis is a tool for building statistical models that
characterize relationships between a dependent variable and one or more independent
variables, all of which are numerical. The relationship may be linear, one of many types
of nonlinear forms, or there may be no relationship at all.
Correlation and regression are particularly useful in sales and marketing applications.
Marketing researchers are often interested in determining if buying behavior is correlated
with price, packaging or seasonal factors (how are ice cream sales related to the seasons
of spring versus the fall, from red or which packages, or at certain price points, for
example?). Regression can often be used to set up a forecasting model. For example, in
order to estimate the effects on volume of price reduction, an analyst could use past data
to develop a regression equation, in order to predict future sales, based on projected
prices.
21. The purpose of design of experiments is to set up a test or series of tests to enable the
analyst to compare two or more methods to determine which is better, or to determine
levels of controllable factors to optimize the yield of a process, or minimize variability of
a response variable.
22. A factorial experiment is a specific type of experimental design that considers all
combinations of levels of each factor. For example, a factorial experiment might be set up
to determine the profitability of an ice cream store based on external and broad quality
related factors. External factors, which could influence profits, would be days/times of
the week and external temperature. Quality factors might be quality of flavors available
and perceived quality characteristics (time, timeliness, empathy, etc.) of the workers.
SOLUTIONS TO PROBLEMS – CHAPTER 6
Note: All problem, QIP, and case data (if not in the body of the problem) is to be found in
the Student Companion Website – Inst Copy in the Student Data & Bonus Files Sub-
folder available in the Excel workbook C06Data.xlsx accompanying this chapter. Click
on the appropriate worksheet tab as noted in the problem (e.g., Prob. 6-1) to access
the data. In addition, the templates in the InstExcelFiles folder --> Unprotected Excel
Templates sub-folder are provided to assist in solving example problems in the body
of the chapter and are also available to aid in solving many of these end-of-chapter
problems. Note also that the templates available to the students on the Student
Companion Website are locked and cannot be altered.
1. A new production process at Fabufirst, Inc., has two in-line stages. The probability of
defective components being produced in stage 1 is 15 percent and 10 percent in stage 2.
Assembled units that have defective components only from stage 1 OR only from stage 2
are considered repairable. However items that have defective components from both
stage 1 and stage 2 (completely defective) must be scrapped.
a. Use a probability tree diagram and calculate the probabilities that the Fabufirst
assembled units are: (i) defective in stage 1 and defective in stage 2 (are completely
defective); (ii) defective in stage 1 and are not defective in stage 2 (called Repairable I);
(iii) not defective in stage 1 but are defective in stage 2 (called Repairable II); and (iv)
not defective in stage 1 and are not defective in stage 2 (completely good). What is the
probability of producing repairable assembled units?
b. Explain the results in terms of the multiplication and the addition rules for probability.
Answer
Test indicates completely defective

(0.15) (0.10) = 0.015
Defective product (0.10)
Defective product Test indicates repairable-I

(0.15) (0.90) = 0.135
(0.15) Nondefective (0.90)
Product
Nondefective Defective product (0.10) Test indicates repairable-II

Product (0.85) (0.85) (0.10) = 0.085
Nondefective (0.90) Test indicates completely good

Product (0.85) (0.90) = 0.765
a) As shown on the tree diagram, the probabilities that the Fabufirst units are:
1) defective in stage one AND defective in stage two (are completely defective) = 0.015
2) defective in stage one AND are not defective in stage two = 0.135
3) not defective in stage one AND are defective in stage two = 0.085
4) not defective in stage one AND are not defective in stage two (completely good) =
0.765
The probability for repairable assembled units = 0.220
b) Using the multiplication rule, the probability that any Fabufirst product coming off the
assembly line is completely defective can be found by multiplying the probabilities along
the branches of the tree. Thus, P(product is completely defective) = P(stage 2 defective |
stage 1 is defective) P(stage 1 is defective) = (0.10)(0.15) = 0.015. Similarly, P(product
is repairable-I) = P(stage 2 nondefective | stage 1 is defective) P(stage 1 is defective) =
(0.90)(0.15) = 0.135. Thus, for any randomly sampled product, the probability that the
process will produce a completely defective product OR a repairable-I product is: 0.015 +
0.135 = 0.15.
We may also compute the conditional probability that the product is defective, but
repairable, or that the product is completely good. Thus, P(product is repairable-II) =
P(stage 2 defective | stage 1 is not defective) P(stage 1 is not defective) = (0.10)(0.85) =
0.085. Or, P(product is completely good) = P(stage 2 not defective | stage 1 is not
defective) P(stage 1 is not defective) = (0.90)(0.85) = 0.765 . Thus, for any randomly
sampled product, the probability that the process will produce a completely good product
OR a repairable-II product is: 0.765 + 0.085 = 0.85.
Finally, to determine the probability for repairable assembled units = P(product is
repairable-I) + P(product is repairable-II) = 0.135 + 0.085 = 0.220
2. Auditors at the Valles Verdes Partners, P.S.C. took a sample of 150 accounts payable
bills, as shown in the table found in the Excel worksheet Prob. 6-2 in the Excel workbook
C06Data.xlsx.
a. Find the proportion of the accounts payable in the sample that are classified as overdue
by using the Excel COUNTIF function.
b. If an auditor takes a random sample of only 15 accounts from this population,
assuming that they follow a binomial distribution, what is the probability that: (i) exactly
6 bills will be overdue? (ii) 5 or fewer bills will be overdue? (iii) 7 or more bills will be
overdue? Use the binomial probability distribution formula and verify your result using
Excel Binomial spreadsheet template.
Answer
a) The 21 percent overdue bills count is verified in the spreadsheet P06-02-03-

10BiPoisExp.xlsx.
The output shows:
Answers the question: Is the bill overdue?

TRUE FALSE
COUNTIF (RANGE, CRITERIA) --> COUNTED ITEMS 32 118
PERCENT OF TOTAL 21 percent 79percent
𝑛
b-1) The binomial distribution’s function has this form: 𝑓(𝑥) = [ ] (𝑝)𝑥 (1 − 𝑝)𝑛−𝑥
𝑥
To find the probability that 6 bills within a sample of 15 will be overdue, we compute:
15 𝟏𝟓 !
𝑓(6) = [ ] (0.21)6 (0.79)15−6 = 𝟔!𝟗! (0.000086)(0.119852) =
6
5005 (0.000086)(0.119852) = 0.05159. Note this result is obtained from a calculator,
but can’t be precisely verified in the P06-02-03-10BiPoisExp.xlsx spreadsheet, as shown,
using the Excel BINOM.DIST (6, 15, 0.21, FALSE), which gives 0.05145, due to
rounding errors.
b-2) The probability of 5 or fewer bills being overdue is P (x ≤ 5) = P (0) + P(1) + P (2) +
P(3) + P (4) + P (5). Rather than calculating individual terms, the Excel BINOM.DIST (5,
15, 0.21, TRUE) calculates the cumulative probability of 0.92515.
b-3) To determine the probability of 7 or more delinquent bills, we take the cumulative
probability of 15 minus the cumulative probability of 6 or fewer. In mathematical terms:
P(x ≥ 7) = P(x ≤ 15) - P(x ≤ 6) = [P(0) + P(1) + P(2) + … + P(15)] – [P(0) + P(1) + P(2)
+ P(3) + P(4) + P(5) + P(6)] = 1.00000 - BINOM.DIST (6, 15, 0.21, TRUE). = 1.00000 –
0.97660 = 0.0234
See the Prob. 6-2 BINOM.DIST tab in the spreadsheet P06-02-03-10BiPoisExp.xlsx to

verify the answers for parts b-1 through b-3, above.
3. The Turkalike Rug Company buys medium grade carpet in 100-foot rolls. The average
number of defects per roll is 2.0. Assuming that these data follow a Poisson distribution,
use the Poisson spreadsheet template to answer the following questions.
a) What is the probability of finding exactly 6 defects in a carpet roll chosen at random?
b) What is the probability of finding 3 or fewer defects in a carpet roll?
Answer
𝒆−𝝀 𝝀𝒙
The Poisson distribution’s function has this form: 𝑓(𝑥) = 𝒙!
𝑒 −2.0 2.06 (0.135335)(64) 8.66144

a) Thus, for 𝑃(𝑥 = 6; 𝜆 = 2) = = = = 0.01203
6! 720 720
This can be checked using the Excel function POISSON.DIST (6, 2.0, FALSE), found in
the P06-02-03-10BiPoisExp.xlsx spreadsheet.
b) The probability of finding 3 or fewer defects can be represented by the cumulative P

(x ≤ 3) = [P (0) + P(1) + P (2) + P(3)] = 0.85712 using the Excel function
POISSON.DIST (3, 2,0, TRUE) found in the P06-02-03-10BiPoisExp.xlsx spreadsheet
under the Prob. 6-3 POISSON.DIST tab
4. Rainbow Punch was made by Frutayuda, Inc. and sold in 12-ounce cans to benefit victims
of Hurricane Zero. The mean number of ounces placed in a can by an automatic fill pump
is 11.7 with a standard deviation of 0.18 ounce. Assuming a normal distribution, determine
the probability that the filling pump will cause an overflow in a can, that is, the probability
that more than 12 ounces will be released by the pump and overflow the can.
Answer
4. For cans of Rainbow Punch the mean, µ = 11.7; the standard deviation,  = 0.18
𝑥− 𝜇
z =
𝜎
12− 11.7
z= = 1.67
0.18
P(x > 12) = 1.0000 – P ( z < 1.67 )
P(z > 12) = 1.0000 - 0.9522 = 0.0478

Thus, there is a 4.78 percent probability of an overflow.
(Results are based on using the NormINVTemplate.xlsx found in the Templates folder in
the Student Companion Site materials folder.) The Cumulative Probabilities for the
Standard Normal Distribution table (Appendix A) can also be used as a cross-check. See
the P06-04NormInv.xlsx spreadsheet for details.
5. El Grande Green Tea is sold in 350 milliliter cans. The standard deviation for the filling
process is 9 milliliters. What must the target mean for the process be to ensure that the
probability of overfilling more than 350 ml in a can is at most 1 percent?
Answer
5. For El Grande Green Tea’s canning process, the values for the 1 percent cutoff and the
standard deviation are:
x = 350 ml;  = 9 ml
For a total probability of 1 percent for overfilling:
𝑥− 𝜇
P(x > upper fill limit) = 1.0000 – P [ ] = 1.0000 - 0.01 = 0.9900
𝜎
Using the NormINVTemplate.xlsx, z = 2.326

𝑥− 𝜇
z =
𝜎
350− 𝜇
2.326 =
9
µ = 329.07 ml
 The process mean should be 329.07 ml., so that there is only a 1 percent probability of
overfilling. This can be checked using the NormINV.xlsx found in the Template folderon
the Student Companion Site. The Cumulative Probabilities for the Standard Normal
Distribution table (Appendix A) can also be used as a cross-check. See the P06-
05NormInv.xlsx spreadsheet for details.
6. Frackly Oil is sold in 900 milliliter (ml) cans. The mean volume of oil placed in a can is
880 ml with a standard deviation of 7.8 ml. Assuming a normal distribution of the data,
what is the probability that the filling machine will cause an overflow in a can, that is, the
probability that more than 900 ml will be placed in the can?
Answer
6. The mean, for the Frackly oil product is µ = 880; the standard deviation,  = 7.8, x = 900.
𝑥− 𝜇
z =
𝜎
900− 880
z= = 2.56
7.8
P(x > 900) = 1.0000 – P ( z < 2.56)
P(z > 900) = 1.0000 - 0.9948 = 0.0052
Thus, there is a 0.52 percent probability of an overflow.

(Results are based on using the NormINVTemplate.xlsx found in the Template folder on
the Student Companion Site.) The Cumulative Probabilities for the Standard Normal
7. Sparkly Cleaning Co. has found that standard size offices have a standard deviation of 5
minutes for their cleaning time. The operations manager knows that 95 percent of the
offices require more than 120 person-minutes to clean. However, she wishes to find out
the average cleaning time for the offices. Can you calculate that for her?
Answer
7. Given that the standard deviation for Spatkly Cleaning Co. offices, is  = 5 min., x = 120,
and P (z > x) = 0.95. Using the NORM.INV function, we have to solve for z when:
P (z < x) = 0.05
Using the NormINVTemplate.xlsx, z = -1.645

𝑥− 𝜇
z=
𝜎
120− 𝜇
-1.645 =
5
µ = 128.225 min
 The process mean should be 128.225 min., so that there is a 95 percent probability of
taking more than 120 person-minutes for cleaning. This can be checked using the
NormINVTemplate.xlsx found in the Template folder on the Student Companion Site.
The Cumulative Probabilities for the Standard Normal Distribution table (Appendix A)
can also be used as a cross-check. See the P06-07NormInv.xlsx spreadsheet for details.
8. The mean time to pour and process 5 cubic yards of concrete by the Piedra Cretebuilders
Co. is 15.5 minutes. If 2 percent of the projects with 5 yards of concrete require more
than 15.75 minutes, what is the standard deviation of the time for such projects?
Answer
8. Given that the mean process time is µ = 15.5 minutes for the Piedra’s standard pour of 5
cubic yards of concrete, we find z by taking P (z < x) = P(1.0000) – P (0.0200) = 0.9800.
Using the NormINVTemplate.xlsx,
For a P = 0.98, z = 2.054

𝑥− 𝜇
z=
𝜎
15.75− 15.5
2.054 =
𝜎
 = 0.1217 min
 The process standard deviation should be 0.1217 minutes, so that there is only a 2
percent probability of taking more than 15.75 minutes for pouring and processing 5 cubic
yards of concrete. This can be checked using the NormINVTemplate.xlsx found in the
Template folder on the Student Companion Site. The Cumulative Probabilities for the
Standard Normal Distribution table (Appendix A) can also be used as a cross-check. See
the P06-08NormInv.xlsx spreadsheet for details.
9. The dimension of a machined part made by Perfection Machining, Inc. has a nominal
specification of 7.6 cm. The process that produces the part can be controlled to have a
mean value equal to this specification, but has a standard deviation of 0.3 cm. What is the
probability that a part will have a dimension:
a) exceeding 8.1 cm?
b) between 7.6 and 7.95 cm?
c) less than 7.25 cm?
Answer
9. The mean value for the machined part, in cm is: µ = 7.6; the standard deviation,  = 0.3
a) P(x > 8.1 cm) = 1.0000 - P ( x < 8.1)

𝑥− 𝜇 8.1− 7.6
z= = = 1.667
𝜎 0.3
P(z > 1.667) = 1.0000 - 0.9522 = 0.0478
Thus, 4.78 percent will have a dimension of more than 8.1 cm.
b) P (7.6 < x < 7.95) = P(x < 7.95) - P(x < 7.60)
7.95− 7.6
z= = 1.167
0.3
P(z < 1.17) = 0.8790
P(z < 0.0) = 0.5000
P (7.6 < x < 7.95) = 0.8783 – 0.5000 = 0.3783

Thus, percent 37.8% will have a dimension between 7.6 and 7.95 cm.
c) For P(x < 7.25)

7.25− 7.6
z= = -1.167
0.3
P(z < -1.17) = 1 - 0.8783 = 0.1217
Thus, 12.2% will be have a dimension of less than 7.25 cm.
This can be checked using the NormINVTemplate.xlsx found in the Template folder on
the Student Companion Site. The Cumulative Probabilities for the Standard Normal
10. Genjeteye, Inc. makes aircraft engines. The mean time to failure has been found to be
100,000 hours and is exponentially distributed.
a) What is the failure rate, , per hour?
b) What is the cumulative probability of failure after 10,000 hours or fewer? Between
10,000 and 15,000 hours?
c) If Genjeteye wishes to provide a warranty that no more than 5 percent of the units will
fail, how many hours of operation without failure should the company guarantee?
Answer
1 1
10. a) 𝜆 = 𝑀𝑇𝑇𝐹
=
100,000
= 0.00001
b) The cumulative probability function is: 𝐹(𝑥) = 1 − 𝑒 − 𝜆𝑥
P(x ≤ 10000) = EXPON.DIST (10000, 0.00001,TRUE) = 0.09516
P(10000 ≤ x ≤ 15000) = P(x ≤ 15000) - P(x ≤ 10000) = 0.13929 – 0.09516 = 0.04413
Using Excel, we have: [EXPON.DIST (15000,0.00001,TRUE)] – [EXPON.DIST

(10000,0.00001,TRUE)] = 0.04413
c) For a cumulative P( x ) ≤ .05 = 1 − 𝑒 − 𝜆𝑥 = 1 − 𝑒 − 0.00001𝑥 ; Thus, 0.95 = 𝑒 − 0.00001𝑥

lne = ln(0.95) = - 0.00001 x
-0.05129.33 = - 0.00001 x
x = 5129.3 hours
Note that to use the EXPON.DIST for this purpose, it is necessary to use successive
approximations (sometimes called “guess and test”) to determine the number of hours
needed, since there is no inverse (INV) function for the EXPON.DIST available. You
may wish to insert a representative set of hours at 1,000 hour increments for the first
10,000 hours, and plot them on a cumulative probability chart. Then, choose the point
below which 95 percent of the values lie. See the P06-02-03-10BiPoisExp.xlsx
spreadsheet for details.
11. Use the data for Twentyfirst Century Laundry for the weights of loads of clothes
processed through their washing department in a week. (See Prob. 6-11 in C06Data
workbook).
a. Apply the Excel Descriptive Statistics tool to compute the mean, standard deviation,
and other relevant statistics, and interpret the results in a meaningful fashion.
b. Use the Frequency Distribution and Histogram Excel template to construct a
frequency distribution and histogram for the data. From what type of distribution might
you suspect the data are drawn? Experiment with the number of cells to create a visually-
appealing histogram and use the Excel Histogram tool to verify the results.
Answer
11. The following results were obtained from the Twentyfirst Century Laundry data
Descriptive Statistics
Mean 32.920
Standard Error 2.590
Median 25.500
Mode 14.000
Standard Deviation 25.899
Sample Variance 670.741
Kurtosis 0.233
Skewness 0.994
Range 106.000
Minimum 1.000
Maximum 107.000
Sum 3292.000
Count 100.000
Largest(1) 107.000
Smallest(1) 1.000
Confidence Level (95.0 percent) 5.139
Histogram
35
30
25
Frequency
20
15
10 Frequency
5
0
15 30 45 60 75 90 105 More
Bin
The conclusion that can be reached from looking at the summary statistics and the
histogram is that these data are exponentially distributed, with descending frequencies.
These data may show that small, low-weight batches are most frequently processed, as
represented by the histogram. This has implications for the number and size of washers
and dryers that should be installed in the laundry. More detailed data can be found in the
Excel solution spreadsheet coded as P06-11-13-Descrip.xlsx.
12. The times for carrying out a blood test at Rivercreek Labs for 100 tests, found in the
Prob. 6-12, in the C06Data Excel workbook, were studied in order to better understand
the process. Apply the Descriptive Statistics tool to compute summary statistics and
explain the results. Also, construct a frequency distribution and histogram, for the data
taken from set. From what type of distribution might you suspect the data are drawn?
Answer
Summary statistics using Excel follow. Also shown is the histogram constructed by the
Data Analysis tool. For best results in constructing the histogram, it is suggested that
students set up their own “bins” so as to provide 7 to 10 approximately equal sized class
intervals for the data. Note that if the program finds that the classes shown in the bins do
not extend over the upper or lower range of the data, it will automatically compensate by
adding a “Less” or “More” category for the outliers.
Descriptive Statistics
Mean 3.528
Median 3.600
Mode 4.100
Standard Deviation 0.841
Sample Variance 0.707
Kurtosis -0.191
Skewness -0.314
Range 3.900
Minimum 1.500
Maximum 5.400
Sum 352.800
Count 100.000
Histogram
25
20
Frequency
15
10
Frequency
5
0
4
1.9
2.2
2.5
2.8
3.1
3.4
3.7
4.3
4.6
4.9
5.1
More
Bin
The conclusion that can be reached from looking at the summary statistics and the
histogram is that these data are fairly normally distributed, with some slight skewing to
the left. More detailed data can be found in the Excel solution spreadsheet P06-11-13-
Descrip.xlsx.
13. The data for Prob. 6-13 found in C06Data Excel workbook shows the weight of a set of
castings (in kilograms) being made in the Fillmore Metalwork foundry. Construct an
Excel spreadsheet to compute the mean and the sample standard deviation using formulas
(6.15) and (6.19). Verify your results using Excel functions.
Answer
n
 xi
Formula 6.15 says: x = i=1
n
n
 (xi − x )
2
Formula 6.19 says: s = i=1

n−1
Calculation of mean & Sample Standard Deviation
Mean (x-bar) = 38.654

Sample Standard deviation (s) = 0.306
The same solutions will be obtained by running the Descriptive Statistics module from
the Data Analysis functions in Excel as shown in the spreadsheet. See the Excel
solution spreadsheet coded as P06-11-13-Descrip.xlsx
14. A warehouse manager at Dockhousing, Inc. maintains a large inventory of video games.
The company’s database states that the mean value of the games in inventory is $50, with
a standard deviation of $5. The manager is concerned about pilfering the more expensive
games by the warehouse employees. She picked a random sample of 100 games and
found the mean value to be $48.50. Assuming a normal distribution, what is the
probability that the sample mean would be $48.50 or less, if all the inventory can actually
be accounted for? What conclusions would you reach?
Answer
a) Since this probability is on the lower tail of the normal distribution, we must calculate:
𝑥−𝜇 48.50 − 50
𝑃[𝑥 ≤ 48.50] = 𝑃 [𝑧 ≤ 𝜎 ] = 𝑃 [𝑧 ≤ ]
5
√𝑛 √100
= 𝑃 [𝑧 ≤ −3.0] = 0.00135
The NORM.DIST (48.50, 50, 0.5, TRUE) can be used to find the value of 0.00135. See
spreadsheet P06-14NormDist.xlsx. Note that the standard error value to be used for sigma
5
in the equation must be = 0.5. The Cumulative Probabilities for the Standard
√100
Normal Distribution table (Appendix A) can also be used as a cross-check. The
Cumulative Probabilities for the Standard Normal Distribution table (Appendix A) can
also be used as a cross-check.
15. The distribution center manager at internet distributor Plastik Parts Warehouse wants to
find a confidence interval for the average time required for an associate to fill an order for
shipment. A sample of 25 orders is taken and the mean time was found to be 9.0 minutes,
with a standard deviation of 2.9 minutes. Compute 95 percent and 99 percent confidence
intervals. Which one is larger? Explain why.
Answer
15. a) 95 percent Confidence interval =
𝜎 2.9
𝑥̅ ± 𝑡 = 9.0 ± 2.064 ( ) = 9.0 ± 1.197 = 7.803 to 10.197
√ 𝑛 √25
We use the Excel function T.INV.2T (0.05,24) to find the value of t = 2.064. It is possible
𝜎
to directly calculate the 𝑡 𝑛 - value using the Excel function CONFIDENCE.T (0.05,
√
𝜎
2.9, 25). The result is 𝑡 √𝑛
= 1.197
b) 99 percent Confidence interval =
𝜎 2.9
𝑥̅ ± 𝑡 = 9.0 ± 2.797 ( ) = 9.0 ± 1.6223 = 7.3777 to 10.6223
√𝑛 √25
Similarly, we use the Excel function T.INV.2T (0.01,24) to find the value of t = 2.797. It
𝜎
is possible to directly calculate the 𝑡 𝑛 - value using the Excel function
√
𝜎
CONFIDENCE.T (0.01, 2.9, 25). The result is 𝑡 √𝑛
= 1.6223. [slight rounding error]
The 99 percent confidence interval actually requires a broader range of values because it
must encompass the broader probability of values inside the boundaries, in contrast to the
smaller probabilities for a 95 percent confidence level.
See spreadsheet P06-15-19ConfInt.xlsx for details.
16. A new product is being tested by Zed Electronics to determine if it will continue to
operate in a stable fashion under a variety of conditions. A sample of 400 items were
tested, and 60 failed the test. Determine a 90 percent confidence interval for the
population proportion.
Answer
16. For this calculation, to find the z value, the Excel function NORM.S.INV can be used:
∝
𝑧 = 𝑁𝑂𝑅𝑀. 𝑆. 𝐼𝑁𝑉 [𝑃 (1 − 2 )] = 𝑁𝑂𝑅𝑀. 𝑆. 𝐼𝑁𝑉 (0.90) = 1.282.
p = 60/400 = 0.15
𝑝 (1−𝑝) 0.15 (0.85)

Confidence interval: 𝑝 ± 𝑧 √ = 0.15 ± 1.282 (√ ) = 0.15 ± 0.0229 =
𝑛 400
0.1271 to 0.1729
17. Tessler Electric utility requires service operators to answer telephone calls from
customers in an average time of 0.1 minute or less. A sample of 25 actual operator times
was drawn, and the results are given in the following table. In addition, operators are
expected to determine customer needs and either respond to them or refer the customer to
the proper department within 0.5 minute. Another sample of 25 times was taken for this
job component and is also given in the table. If these variables can be considered to be
independent, are the average times taken to perform each component statistically
different from the standards?
Component Mean Time Standard Deviation

Answer 0.1023 0.0183
Service 0.5290 0.0902
Answer
Specification for answer time for the Tessler utility is :

H0: Mean response time:  1 < 0.10
H1: Mean response time:  1 > 0.10
x 1 = 0.1023, s1 = 0.0183
and the t-test (assuming a one-tailed distribution with α = 0.05) is:
x − 0.10 0.1023 − 0.10 0.0023
t1 = = = = 0.6284 , t24, 0.05 = 1.711
s/ n 0.0183 / 25 0.0037
Specification for service time is:

H0: Mean service time:  2 < 0.50
H1: Mean service time:  2 > 0.50
x 2 = 0.5290, s2 = 0.0902
and the t-test (assuming a one-tailed distribution with α = 0.05) is:
x − 0.50 0.529 − 0.50 0.029

t2 = = = = 1.608 , Critical value: t24, 0.05 = 1.711
s/ n 0.0902 / 25 0.0180
Because this is a one-tailed test, the critical value is tn-1, .
Note that the Excel function T.INV (probability, deg_freedom) may be used to calculate
the t value by plugging in the parameters, α = 0.05, and 24 degrees of freedom. Using
that level of significance we get t24, α=0.05 = - 1.711. Note that the negative value given by
the Excel function T.INV (probability, deg_freedom) must be changed to positive.
Because this is an upper-tailed test, the decision rule is to reject H0 if t > 1.711.
Because t24, 0.05 = 1.711, we cannot reject the null hypothesis for t1. Also, we cannot reject
the hypothesis for t2. Therefore, there is no statistical evidence that the mean response time
exceeds 0.10 for the answer component, and no statistical evidence that the mean service
time exceeds 0.50.
18. A quality manager at Newvis Pharmaceutical Company is monitoring a process that fills
vials with a liquid medication designed to prevent glaucoma in the eyes of the user. The
company wants to ensure that each vial contains at least 60 ml. (2.03 fluid oz.) of the
product. A sample of 25 vials is tested, and a mean of 63 ml. and a sample standard
deviation of 10 ml. are found. The quality manager wishes to test the null hypothesis that
vials contain less than or equal to 60 ml. using an α = 0.05 significance level (rejecting
this hypothesis provides evidence that the vials contain the required amount.) Conduct
the test and explain your results.
Answer
The hypothesis to be tested is:

H0: Mean fill volume  ≤ 60
H1: Mean fill volume  > 60
The appropriate test statistic is the following formula with  0 = 60:
𝑥̅ − 𝜇 𝑥̅ − 60 63−60 3
𝑡= 𝑠 = 𝑠 = 10 = = 1.5
2
√𝑛 √𝑛 √25
Because this is a one-tailed test, the critical value is tn-1, . Using a critical level of
significance of 0.05, t24, α = 1.711.
Note that the Excel function T.INV (probability, deg_freedom) may be used to calculate
the t value by plugging in the parameters, α = 0.05, and 24 degrees of freedom. Using
that level of significance we get t24, α=0.05 = - 1.711. Note that the negative value given by
the Excel function T.INV (probability, deg_freedom) must be changed to positive.
Because this is an upper-tailed test, the decision rule is to reject H0 if t > 1.711.
Since the value of the test statistic is 1.5, we cannot reject the null hypothesis and the
manager can conclude that there is insufficient statistical evidence that the mean fill
volume exceeds 60. Note that the Excel function T.INV (probability, deg_freedom) may
be used to calculate the 1.711 value by plugging in the parameters, p = 0.05, and 24
degrees of freedom (n -1). In this case  must equal 0.05 because the function provides
for a 1-tailed test.
19. The quality manager at Olvista Pharmaceutical Company is certifying a new process that
must produce 95 percent (or better) good product before certification can be completed.
A sample of 36 containers from the process line are tested, and 92 percent are found to be
good. Formulate the appropriate hypotheses and test them using an  = 0.05 significance
level. Explain your results.
Answer
The hypothesis which requires testing is:
H0: Proportion of good product  ≥ 95

H1: Proportion of good product  < 95
The formula that is required to find the test statistic, z, is:

𝑝 − Π0 0.92 − 0.95 − 0.03
𝑧= = = = −0.826
Π (1 − Π ) 0.95(1 − 0.95) 0.0363
√ 0 0 √
𝑛 36
Because this is a one-tailed test, the critical value is z α. Using a level of significance of
0.05, z.05 = - 1.645.
Since the value of the test statistic is - 0.826, we cannot reject the null hypothesis and the
manager can conclude that there is no statistical evidence that the population proportion
is less than 95 percent.
Note that the Excel function NORM.S.INV (probability) may be used to calculate the
- 1.645 value. The negative value given by the Excel function NORM.S.INV
(probability) by plugging in the parameters, α = 0.05, can be used, as shown. Because
this is a lower-tailed test, the decision rule is to reject H0 if z < - 1.645. In this case α must
equal 0.05 because the function provides for a 1-tailed test.
20. Rabbitfoot Community Bank makes a large number of home equity loans each year. The
vice president of loan administration wishes to determine if their time for paperwork
processing is lower than the average time of their top competitor. A sample of 30 loans
taken at Rabbitfoot Bank yielded a mean of 38.10 minutes and a standard deviation of
2.58 minutes. (see the data in the Ch06Data Excel workbook). Data obtained from
competitor of 36 applications indicates that the average time for processing an application
is 39.48 minutes, with a standard deviation of 2.48 minutes.
a) Verify the calculation of the mean, standard deviation, and variance for each set of
data using the Descriptive Statistics tool.
b) Test the null hypothesis that his bank’s processing time is greater than or equal to the
competitor’s average, versus the alternative hypothesis that the bank’s time is less than
the competitor at the 5 percent significance level. Use the z-Test: Two Sample Assuming
Equal Variances from the Data Analysis menu in Excel.
Answer
To conduct this hypothesis test for comparing the processing time, select t-test: Two-
Sample Assuming Equal Variances from the Data Analysis menu.
Let 𝜇1 = the mean of the Rabbitfoot Bank data
Let 𝜇2 = the mean of the industry data
The hypothesis may be stated as: 𝐻1 : 𝜇1 − 𝜇2 ≥ 0 versus the alternative:

𝐻2 : 𝜇1 − 𝜇2 < 0
The test results from the Excel Data Analysis menu are as shown in the table, below. See
spreadsheet P06-20TwoSampl.xlsx for details.
t-Test: Two-Sample Assuming Equal

Variances
Rabbitfoot Industry Data

Mean 38.0967 39.4750
Variance 6.6307 6.1534
Observations 30.0000 36.0000

Pooled Variance 6.3696
Hypothesized Mean Difference 0.0000
df 64.0000
t Stat -2.2092
P(T<=t) one-tail 0.0154
t Critical one-tail 1.6690
P(T<=t) two-tail 0.0307
t Critical two-tail 1.9977
Since the t Stat figure is negative, the probability of 0.0154 can be read directly, as less
than 2 percent probability of this large a difference in means, due to chance. Also, the t
Stat value must be, and is, less than the t Critical one-tail value, we can reject the null
hypothesis of no significant difference between means. Results can be found in the
spreadsheet P06-20TwoSampl.xlsx.
21. Softswell, a software developer, is trying to determine if any of three potential
subcontractors has better programmers in order to outsource a development project. The
three subcontractors agreed to test 5 programmers, using a standardized test provided by
Softswell, as provided in the data in the Ch06Data Excel workbook. Use the single factor
ANOVA Excel tool to determine if there is a significant difference between the scores of
programmers at the three contractors at the 5 percent level.
Answer
The null hypothesis is: H0: µ1 = µ2 = µ3 versus

The alternative hypothesis: H1: Not all µ1 = µ2 = µ3
The ANOVA results from the Excel Data Analysis menu are as shown in the table,
below. See spreadsheet P06-21ANOVA.xlsx for details.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Sub 1 10 767 76.7 75.5667
Sub 2 10 840 84 63.5556
Sub 3 10 757 75.7 69.3444
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 410.6 2 205.3 2.9544 0.0691 3.3541
Within Groups 1876.2 27 69.4889
Total 2286.8 29
Since the F value is less than the F crit value, and since the probability (P-value) of
0.0691 is larger than our 5 percent significance level, we cannot reject the null hypothesis
that all means are equal.
22. At White Clay Pottery, a kiln is used to bake ceramic pottery. The production manager
wishes to determine the relationship between temperature and brittleness, so he takes
measurements of the brittleness of test items versus the temperature of the oven in
degrees C. Use the Excel Regression tool to determine the regression equation and the R2
value. Explain the output. If the oven is heated to 875 deg. C, what would you predict
that the brittleness measure will be?
Answer
22. See spreadsheet P06-22REGRESS.xlsx for details. From the table below, we can see that
the regression equation is: Y = -2.25012 + 0.00781 X, where X is the independent
variable, temperature. The R2 value = 0.92324 shows a very good fit, which is borne out
by both the ANOVA analysis, showing a significance level of 6.98 x 10-10 and also by
the regression line fit plot.
If the oven is heated to 875 deg. C, we can predict that the brittleness measure will be:
Y = -3.73 + 0.00826 (875) = 3.4975, which can be seen as approximately correct on the
regression line fit plot
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.97509
R Square 0.95080
Adjusted R Square 0.94701

Observations 15.00000
ANOVA
Significance
df SS MS F F
Regression 1 47.726 47.726 251.220 6.98E-10
Residual 13 2.470 0.190
Total 14 50.196
Standard Lower Upper Lower Upper

Coefficients Error t Stat P-value 95% 95% 95% 95%
Intercept -3.73 0.55846 -6.67905 0.00002 -4.93649 -2.52351 -4.93649 -2.52351
Temp-deg C 0.00826 0.00052 15.84992 0.00000 0.00713 0.00938 0.00713 0.00938
Temp-deg C Line Fit Plot

9.0
8.0
7.0
6.0
Brittleness
5.0
4.0 Y
3.0
Predicted Y
2.0
1.0
0.0
600 700 800 900 1000 1100 1200 1300 1400 1500
Temp-deg C
23. The process engineer at Sival Electronics was trying to determine whether three suppliers
would be equally capable of supplying the mounting boards for the new “gold plated”
components that she was testing. The table found in the worksheet Prob. 6-23 in the
Excel workbook C06Data shows the coded defect levels for the suppliers, according to
the finishes that were tested. Lower defect levels are preferable to higher levels. Using
ANOVA, analyze these results. What conclusion can be reached?
Answer
23. The process engineer at Sival Electronics can develop a one-way ANOVA spreadsheet
(see spreadsheet P06-23Anova.xlsx for details) that shows:
Supplier 1 Supplier 2 Supplier 3

Finish 1 11.9 6.8 13.5
Finish 2 10.3 5.9 10.9

Finish 3 9.5 8.1 12.3
Finish 4 8.7 7.2 14.5
Finish 5 14.2 7.6 12.9
SUMMARY

Supplier 1 5 54.6 10.92 4.762
Supplier 2 5 35.6 7.12 0.697
Supplier 3 5 64.1 12.82 1.812
ANOVA
Between Groups 84.233 2 42.117 17.377 0.00029 3.885
Within Groups 29.084 12 2.424
Total 113.317 14
According to the F-test, with the F = 17.377, which is significantly above the FCrit =
3.885 and probability of P < .05, there is a significant difference between suppliers
24. A quality analyst at Paintfast Manufacturing Co. wants to determine if a new paint
formulation, used to paint parts for a customer’s assembly operation will dry fast enough
to meet the customer’s needs. The customer would prefer to obtain a high level of
“dryability” at low temperatures, even if it requires a higher level of drying agent. He
hypothesizes that a high level of drying agent will result in high dryability, high
temperature – alone – will result in a moderately high level of dryability, and low
temperature or a low level of drying agent will result in a low level of dryability. He
hopes that the main and interaction effects with the temperature, which is expensive
(because an oven would need to be used), will be minimal. The data found in the
worksheet Prob. 6-24 in the Excel workbook C06Data were gathered in testing all
combinations. What recommendation would you make?
Answer
24. As can be seen, from the spreadsheet P06-24-2X2FactExp.xlsx results, shown below,
Factor 1 (the drying agent) has the greatest impact on dryability. This shows that the best
results can be obtained by using a high level of drying agent and a low temperature.
However, the interaction effect for the two factors is moderately strong, in a negative
direction, as well. If the cost of the drying agent increased, while the cost of the oven and
its operation decreased, then use of the oven, with a reduction in the amount of drying
agent should be considered.
Description Name Low level High level

Factor 1 Drying agent 10 mg. 20 mg.
Factor 2 Temperature 80 degrees 100 degrees
Treatment Factor 1 Factor 2 Response

A Low Low 78
B High Low 91
C Low High 85
D High High 87
Main Effects
Factor 1 7.5
Factor 2 1.5
Interaction
Factor 1 x Factor 2 -5.5
25. The process engineer at Sival Electronics is also trying to determine whether a newer,
more costly design involving a gold alloy in a computer chip is more effective than the
present, less expensive silicon design. She wants to obtain an effective output voltage at
both high and low temperatures, when tested with high and low signal strength. She
hypothesizes that high signal strength will result in higher voltage output, low
temperature will result in higher output, and the gold alloy will result in higher output
than the silicon material. She hopes that the main and interaction effects with the
expensive gold will be minimal. The data found in the worksheet Prob. 6-25 in the Excel
workbook C06Data were gathered in testing of all combinations. What recommendation
would you make?
Answer
25. Using the following input data:

Signal Material Temperature Output Voltage
Low Silicon Low 7
High Silicon Low 16
Low Gold Low 8
High Gold Low 18
Low Silicon High 14
High Silicon High 10
Low Gold High 11
High Gold High 12
The process engineer at Sival Electronics can calculate the main effects as follows:
Signal
High (18 + 12 + 16 + 10)/ 4 = 14
Low ( 8 + 11 + 7 + 14)/ 4 = 10
High - Low = 4
Material
Gold (18 + 12 + 8 + 11)/ 4 = 12.25
Silicon (16 + 10 + 7 + 14)/ 4 = 11.75
Gold - Silicon = 12.25 - 11.75 = 0.5
Temperature
High (12 + 10 + 11 + 14)/ 4 = 11.75
Low (18 + 16 + 8 + 7)/ 4 = 12.25
High-Low = 11.75 - 12.25 = - 0.5
As can be seen, from the spreadsheet P06-25-2X3FactExp.xlsx results, shown below, the
main effect of the “signal” (high or low) far outweigh the effects of material and
temperature, indicating that those factors are insignificant. However, the interaction effect
of the signal x temperature also appears to be significant, as well.
Main Effects
Signal 4.00
Material 0.50
Temperature -0.50
Interactions
Signal x Material 1.50
Signal x Temperature -5.50
Material x Temperature -1.00
SUGGESTIONS FOR PROJECTS, ETC.
1. This experiment is designed to give the student “hands on” experience in elementary
experimental design.
2. This experiment in aerodynamics will give the student some “hands on” experience in
dealing with design problems in which multiple variables can have a significant impact on
the operability of the mechanism.
ANSWERS TO CASE QUESTIONS

Case – Sizzleking Burrito House

1. Portions of the spreadsheet Ch06 Sizzleking Case Soln.xlsx are shown below. A frequency
count of the 25 customers who were surveyed is evenly divided, from first timers to those who
eat there weekly. The survey averages show that customers were most satisfied with the menu
and order preparation. Courtesy of employees, restaurant cleanliness, and value for price hovered
around a 4. Tastiness of the food and overall satisfaction averaged around 3.8 for all respondents.
Respondents were less enthusiastic about the food being served hot at 3.60. The likelihood of the
customer dining at Sizzleking again is only 3.56. The standard deviations for all of the questions
appear to be close to equal for the menu, order preparation, employee courtesy, restaurant
cleanliness, and overall satisfaction. There was much more variation in the answers to the
questions about food served hot, value vs. price, and likelihood to dine again and to recommend
the restaurant to friends.
Customer survey responses Avg Std. dev.

Menu was easy to read 4.64 0.70
Order was prepared correctly 4.28 0.74
Food was tasty 3.84 0.94
Food was served hot 3.60 1.38
Employees were courteous and polite 4.04 0.61
Restaurant was clean 4.04 0.79
Value for price paid 3.92 1.19
Overall satisfaction 3.80 0.87
Likely to dine with us again? 3.56 1.08
Likely to recommend us to friends? 3.44 1.23
2. The average responses to the first seven questions by customers, are well correlated with
their satisfaction scores. The R2 = 0.869, which indicates a fairly close correlation
[correlation coefficient = √0.869 = 0.932] between the average score and the overall
satisfaction score, can be visualized on the scatter chart, below.
Overall satisfaction Line Fit Plot

6.0
5.0
4.0
Average score
3.0
Average score
2.0 Predicted Average score
1.0
0.0
0 1 2 3 4 5 6
Overall satisfaction
3. The likelihood of the customer dining again at Sizzleking can be predicted by using the
satisfaction score and regression analysis by customer. The likelihood of customer’s
dining again is moderately correlated to the satisfaction score. The R2 = 0.625, which
does not indicate an extremely close correlation between the average score and the
overall satisfaction score, as seen on the scatter chart, below.
Likely to dine with us again? Line Fit Plot

6
5
3
2 Predicted Overall satisfaction
0
0 1 2 3 4 5 6
Likely to dine with us again?
4. The descriptive statistics for burrito weights show that the mean 𝑥̅ = 1.100 and standard
deviation, s = 0.048. The frequency distribution and histogram show that the sample is
somewhat normal in shape. The range and standard deviation show that the food
servings are somewhat variable. The range is 0.24, or ¼ pound difference between the
lowest and highest values. This could be due to the nature of the burrito product, where
the customer specifies ingredients, which add more or less weight to the burrito.
Descriptive Statistics - Sizzleking Bin Frequency

1.25 0
Mean 1.100 1.30 3
Standard Error 0.004 1.35 9
Median 1.100 1.40 16
Mode 1.090 1.45 17
Standard Deviation 0.048 1.50 34
Sample Variance 0.002 1.55 22
Kurtosis -0.293 1.60 23
Skewness -0.138 1.65 11
Range 0.240 1.70 7
Minimum 0.960 1.75 6
Maximum 1.200 1.80 1
Sum 165.040 1.85 1
Count 150.000 More 0
Confidence Level (95.0 percent) 1.200
Histogram
40
35
30
Frequency
25
20
15 Frequency
10
5
0
0.95 0.98 1.01 1.04 1.07 1.1 1.13 1.16 1.19 1.22 1.25
Bin
5. Recommendations for improvement to Juan Niceley include:

a. Work to ensure that food is served hot.
b. Develop a panel to do taste-testing of various existing and new products.
c. Provide incentives for repeat customers, such as discounts for people who eat there
three times, six times, nine times, etc.
d. Consider ways to ensure that exact weighs of ingredients can be measured and
assembled in the burritos.
Case – Maggie’s French Fry Study
This is a fairly large database (see French Fry Study.xlsx for details), which can provide a
number of possible ways to use statistical techniques. The data may be analyzed as one large
sample, or may be broken into its subsamples by location, container, order size, inspection
results, or conforming/non-conforming. Descriptive statistics can be used to characterize the
data, including measures of central tendency, histograms, and measures of variation.
Representative analyses may be found in spreadsheet Ch06- French Fry Study-Soln.xlsx
The descriptive statistics, below, show what are probably significant differences in dimensions of
the fries at Location 1 versus Location 2. Fries from Location 2 average 0.533 inch longer than
those from location 1.
Lengths Total Sample Location 1 Location 2
Mean 6.481 6.248 6.781

Standard Error 0.091 0.118 0.142
Median 6.100 5.800 6.500
Mode 5.000 5.000 6.000
Standard Deviation 2.687 2.596 2.775
Sample Variance 7.222 6.741 7.699
Kurtosis 0.094 0.198 0.010
Skewness 0.567 0.644 0.463
Range 14.100 12.900 14.100
Minimum 0.700 1.100 0.700
Maximum 14.800 14.000 14.800
Sum 5625.917 3049.117 2576.800
Count 868.000 488.000 380.000
Largest(1) 14.800 14.000 14.800
Smallest(1) 0.700 1.100 0.700
Histogram
300
250
Frequency
200
150
100
Frequency
50
0
Bin
Conforming vs. Non-Conforming Fries
Location 1 Location 2 Total

Conforming 258 199 457
Non-Conforming 230 181 411
488 380 868
Percentage of Totals by Location
Conforming 52.869 52.368 52.650

Non-Conforming 47.131 47.632 47.350
100.000 100.000 100.000
The above table shows that the percentage conforming and non-conforming fries are
approximately equal in both locations. This is, of course, not acceptable. The food outlets should
be striving to produce 100% conforming products at all times.
Case - Berton Card Company
The main effects, interactions and interaction charts (see Ch06-2x3BertonCardCo.xlsx

for details) for the 8 experiments are seen below.
Main Effects
Line Speed 0.87
Avg. PSI-Front 0.51
Avg. PSI-Back -0.01
Interactions
Line Speed x Avg. PSI-
Front 0.07
Line Speed x Avg. PSI-Back 0.34
Avg. PSI-Front x Avg. PSI-
Back -0.15
Interaction Charts
Factor 1 x Factor 2
10
9
8
Factor 2 High
7
6 Factor 2 Low
Low 1000 High 1150
Factor 1
Factor 1 x Factor 3
9.5
9
8.5
8 Factor 3 High
7.5 Factor 3 Low
7
Low 1000 High 1150
Factor 1
Factor 2 x Factor 3
8.8
8.6
8.4
8.2
Factor 3 High
8
7.8 Factor 3 Low
7.6
Low 1000 High 1150
Factor 2
Conclusions based on Data Analysis
The line speeds [Factor 1] and Front (Face) roller pressure [Factor 2] appear to be the
significant variables affecting roughness. There is negligible interaction between those
two variables. There is significant interaction between line speed [Factor 1] and Back
roller pressure [Factor 3]. There is also significant interaction between the Front [Factor
2] and Back roller pressures [Factor 3].
Experiment 4 and Experiment 8 contain two and three readings which are out of
specification limits on the high end. These resulted in averages which were also higher
than the upper specification limit.
ANOVA Analysis
Using the data in Table 6.4 in the text and the Excel Data Analysis tool, an ANOVA
analysis was conducted to determine whether a significant difference exists between low
and high line speed versus pressure. An examination of the SUMMARY and ANOVA
parts of the table, below, shows that the means and the variances differ, but one is not
considerably larger than the other. In the ANOVA part of the table, the mean square
between groups is not much larger than the mean square within groups, resulting in an F
statistic of 0.3133. When this value is compared to the critical F value of 18.513, for 1
and 2 degrees of freedom, we cannot reject the hypothesis that the means of the two
factors are the same, because the calculated F value is much smaller than the Fcrit.
SUMMARY
1000 ft/min 2 1665 832.5 9112.5
1125 ft/min 2 1800 900 20000
ANOVA
Between Groups 4556.3 1 4556.25 0.31301 0.632133 18.51282
Within Groups 29113 2 14556.25
Total 33669 3
The manager can could conclude that there is no significant difference between low and
high line speed versus pressure.
Recommendations
Based on the factorial analysis, management should be advised that as line speed and
Front roller pressure are increased, surface roughness increases. In regard to the
interaction effect between speed and Back roller pressure, as speed is increased, while
holding Front roller pressure constant, management should be advised to have operators
to keep the Back roller pressure low, in order to have a smaller effect on roughness. In
regard to the interaction effect between the Front and Back roller pressures, it would be
wise for management to instruct machine operators to hold the high pressure setting on
the Back roller, as front roller pressure is increased, and line speed is kept constant.
In general, it can be seen that the higher the line speed and pressure settings for the
rollers, the greater the surface roughness. Therefore, management is advised to keep all
settings as low as possible, if the other operating factors are favorable.
Regarding the out of specification limit readings, if previous recommendations are

followed, the problem of high readings should correct itself.
Case – The Battery Experiment
1. Using the data in Table 6.5 and Excel template 2x3 Battery Experiment.xlsx in the
Instructor Reserve folder we find the main effects, interactions, and interaction plots for
the three factors as follows.
To test the hypothesis that spending more money on high-quality batteries, using
expensive gold-plated connectors, and storing batteries at low temperatures will improve
battery life performance in a race, an electrical test circuit was constructed to measure
battery discharge under different configurations. Each factor (battery type, connector
type, and temperature) was evaluated at two levels, resulting in 23 = 8 experimental
conditions shown in the table. (Note that they had to be re-arranged to fit the 2 X 3 Excel
template.) Calculations of the main effects are as follows:
Battery cost
High = (612 + 490 + 493 + 489)/4 = 521 minutes

Low = (72 + 93 + 75 + 94)/4 = 83.5 minutes
Main effect = High – Low = 437.5 minutes
Connector type
Gold-plated = (94 + 75 + 490 + 493)/4 = 288 minutes
Standard = (72 + 93 + 612 + 489)/4 = 316.5 minutes
Main effect = Gold-plated - Standard = 28.5 minutes
Temperature
Cold = (72 + 75 + 490 + 612)/4 = 312.25 minutes
Ambient = (93 + 489 + 493 + 94)/4 = 292.25 minutes
Main effect = Ambient – Cold = 20 minutes
These results suggest that high cost batteries do have a longer life, but that the impacts of
gold plating or battery temperature do not appear to be significant. Because only one factor
appears to be significant, calculation of interaction effects are not strictly required.
However, they have been routinely calculated as seen on the spreadsheet.
The plots for each of the three factors and their interactions are shown here.
Factor 1 x Factor 2
600
500
400
300
200 Factor 2 High
100 Factor 2 Low
0
Low cost High Cost
Factor 1
Factor 1 x Factor 3
600
500
400
300
Factor 3 High
200
Factor 3 Low
100
0
Factor 2 High
Low cost x Factor
Cost 3
Factor 1
400
350
300
250
200
150 Factor 3 High
100 Factor 3 Low
50
0
Low cost High Cost
These conclusions couldFactor 2
be tested more rigorously using analysis of variance, which will
be discussed briefly next.
2. Using the data in Table 6.6 and the Excel Data Analysis tool an ANOVA analysis was
conducted to determine whether a significant difference exists between battery types. An
examination of the SUMMARY and ANOVA parts of the table, below, shows that the
mean 𝑥̅ = 521 and the variance, s2 = 3683.333, which are considerably larger than the
other two groups. Also, in the ANOVA part of the table, the mean square between groups
is also much larger than the mean square within groups, resulting in an F statistic of
183.0412. When this value is compared to the critical F value of 4.256, for 2 and 9
degrees of freedom at the 0.05 level of significance (from an F table, available in any
statistics text), we can reject the hypothesis that the means of the three battery types are
the same. In fact the calculated F value is so much larger than the Fcrit , that we only have
5.13 X 108 probability (the – value in the output) that we could have been wrong and
should have failed to reject the hypothesis.
The model race car enthusiasts could conclude that a significant difference exists between
the battery types. Other statistical tests exist to demonstrate what factor levels differ from
the others, although in this case it is fairly obvious.
Anova: Single Factor
SUMMARY
A 4 2084 521 3683.333
B 4 400 100 212.6667
C 4 334 83.5 135
ANOVA
Between Groups 491892.7 2 245946.3 183.0412 5.135E-08 4.256495
Within Groups 12093 9 1343.667
Total 503985.7 11
Instructor Reserve Cases
Case: The HMO Pharmacy Crisis
It appears that, because of the crisis, top management at Dover is reacting in a typical
“red Bead” manner. The importance of statistical concepts in quality management cannot
be overemphasized. Indeed, statistics is essential in implementing a continuous
improvement philosophy.
Statistical thinking is a philosophy of learning and action based on the principles that:
1. All work occurs in a system of interconnected processes.

2. Variation exists in all processes.
3. Understanding and reducing variation are keys to success
Understanding processes provides the context for determining the effects of variation and
the proper type of managerial action to be taken. By viewing work as a process, we can
apply statistical tools to establish consistent, predictable processes, study them, and
improve them. While variation exists everywhere, many business decisions do not often
account for it, and managers frequently confuse common and special causes of variation.
Those inside and outside the pharmacy must understand the nature of variation, before they
can focus on reducing it.
The complex interactions of these variations in drugs, equipment, computer systems,

professional, clerical, and technical staff, and the environment are not easily understood.
Variation due to any of these individual sources could be random; individual sources may
not be identified or explainable. However their combined effect in the pharmaceutical
system is probably stable and might be predicted statistically. These common causes of
variation that are present as a natural part of the process need to be understood before
special causes can be separated and eliminated.
To address the problem, Dover should consider using the following steps:
• Form a cross-functional group consisting of pharmacists, assistant pharmacists,

physicians, nurses, health care insurance experts, and administrative support people
who may handle prescriptions or assess pharmaceutical risks.
• Develop an understanding of the process by flowcharting all steps, including
interconnected processes in various locations.
• Do a risk assessment to determine where there are gaps in procedures or potential risk
of errors
• Develop corrective action teams to work first on the causes with the highest risk if
errors in prescription handling occur.
• Propose solutions
• Pilot test solutions to ensure that problems have been corrected
• Disseminate results to all concerned
• Track results to determine long-term benefits.
• Work on solving problems in priority order
• Benchmark best practices for future improvements.
WML/JRE 8/31/15

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Managing for Quality and Performance

Excellence 10th Edition Evans Solutions

Solution Manual: https://testbankpack.com/p/solution-manual-for-managing-

Test Bank: https://testbankpack.com/p/test-bank-for-managing-for-quality-and-

Statistical Methods in Quality Management

• To help students appreciate the importance of statistical thinking in order to understand

• To introduce the concept of statistical measurement of service quality

ANSWERS TO QUALITY IN PRACTICE QUESTIONS

Modern Applications of Statistics in Quality

Improving Quality of a Wave Soldering Process Through the Design of Experiments

2. Experimental design allows the experimenter to systematically evaluate two or more

ANSWERS TO REVIEW QUESTIONS

1. Statistics is a science concerned with “the collection, organization, analysis, interpretation,

2. In statistical terminology, an experiment is a process that results in some outcome. The

3. The following rules apply to calculating probabilities of events:

true or have already occurred.

A curve that characterizes outcomes of a continuous random variable is called a

6. A probability distribution can be either discrete or continuous, depending on the nature of

variables are used to measure quantifiable characteristics, such as time, temperature,

8. Methods of sample selection, or sampling schemes, include: simple random sampling,

10. A population is a complete set or collection of objects of interest. A sample is a subset of

proportional measures. In addition, advanced tools, such as ANOVA, regression analysis,

SOLUTIONS TO PROBLEMS – CHAPTER 6

Test indicates completely defective

Defective product Test indicates repairable-I

Nondefective Defective product (0.10) Test indicates repairable-II

Nondefective (0.90) Test indicates completely good

The probability for repairable assembled units = 0.220

a) The 21 percent overdue bills count is verified in the spreadsheet P06-02-03-

The output shows:

Answers the question: Is the bill overdue?

See the Prob. 6-2 BINOM.DIST tab in the spreadsheet P06-02-03-10BiPoisExp.xlsx to

𝑒 −2.0 2.06 (0.135335)(64) 8.66144

b) The probability of finding 3 or fewer defects can be represented by the cumulative P

P(x > 12) = 1.0000 – P ( z < 1.67 )

P(z > 12) = 1.0000 - 0.9522 = 0.0478

For a total probability of 1 percent for overfilling:

Using the NormINVTemplate.xlsx, z = 2.326

P(x > 900) = 1.0000 – P ( z < 2.56)

P(z > 900) = 1.0000 - 0.9948 = 0.0052

Thus, there is a 0.52 percent probability of an overflow.

Using the NormINVTemplate.xlsx, z = -1.645

For a P = 0.98, z = 2.054

a) P(x > 8.1 cm) = 1.0000 - P ( x < 8.1)

P(z > 1.667) = 1.0000 - 0.9522 = 0.0478

P(z < 1.17) = 0.8790

P(z < 0.0) = 0.5000

P (7.6 < x < 7.95) = 0.8783 – 0.5000 = 0.3783

c) For P(x < 7.25)

P(z < -1.17) = 1 - 0.8783 = 0.1217

Thus, 12.2% will be have a dimension of less than 7.25 cm.

b) The cumulative probability function is: 𝐹(𝑥) = 1 − 𝑒 − 𝜆𝑥

P(x ≤ 10000) = EXPON.DIST (10000, 0.00001,TRUE) = 0.09516

P(10000 ≤ x ≤ 15000) = P(x ≤ 15000) - P(x ≤ 10000) = 0.13929 – 0.09516 = 0.04413

Using Excel, we have: [EXPON.DIST (15000,0.00001,TRUE)] – [EXPON.DIST

c) For a cumulative P( x ) ≤ .05 = 1 − 𝑒 − 𝜆𝑥 = 1 − 𝑒 − 0.00001𝑥 ; Thus, 0.95 = 𝑒 − 0.00001𝑥

Formula 6.19 says: s = i=1

Calculation of mean & Sample Standard Deviation

Mean (x-bar) = 38.654

15. a) 95 percent Confidence interval =

b) 99 percent Confidence interval =

See spreadsheet P06-15-19ConfInt.xlsx for details.

𝑝 (1−𝑝) 0.15 (0.85)