prob_stats_review - 1 Basic Probability and Statistics...

Unformatted text preview: 1 Basic Probability and Statistics Review Six Sigma Black Belt Primer Pat Hammett, Ph.D. January 2003 Instructor Comments: This document contains a review of basic probability and statistics. It also includes a practice test at the end of the document. Note: answers to the practice test questions are included in an appendix. Pat Hammett University of Michigan 2 Table of Contents 1. VARIABLES- QUALITATIVE AND QUANTITATIVE .....................3 1.1 Qualitative Data (Categorical Variables or Attributes) ...........................3 1.2 Quantitative Data...............................................................................................4 2. DESCRIPTIVE STATISTICS ................................................6 2.1 Sample Data versus Population Data....................................................................6 2.2 Parameters and Statistics.....................................................................................6 2.3 Location Statistics (measures of central tendency).......................................7 2.4 Dispersion Statistics (measures of variability)...............................................8 3. FREQUENCY DISTRIBUTIONS ........................................... 10 3.1 Frequency Measures..............................................................................................10 3.2 Histogram.................................................................................................................11 3.3 Discrete Histogram...............................................................................................12 3.4 Continuous Data Histogram.................................................................................13 4. PROBABILITY AND ERROR................................................ 15 4.1 Probability Properties ...........................................................................................15 4.2 Type I and II Errors............................................................................................17 4.3 p-values and statistical significance .................................................................19 5. NORMAL DISTRIBUTION................................................. 20 5.1 Properties of the Normal Distribution ............................................................ 20 5.2 Estimating Probabilities Using Normal Distribution .....................................21 5.3 Calculating Parts Per Million Defects Given Normal Distribution............. 22 6. LINEAR REGRESSION ANALYSIS........................................ 26 6.1 General Regression equation............................................................................... 26 6.2 Simple linear regression...................................................................................... 26 6.3 Correlation.............................................................................................................. 28 6.4 Using Scatter Plots to Show Linear Relationships....................................... 296....
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