Statistical Confidence Intervals for Process Mean Evaluation PPT

This PPT slide, part of the 72-slide Six Sigma - Confidence Interval Analysis PowerPoint presentation, presents a statistical analysis focused on confidence intervals for a mean value, specifically evaluating whether a process's true mean exceeds a target threshold of 58.50%. It outlines 3 confidence levels: 90%, 95%, and 99%, each providing a range for the true mean value (denoted as \( \bar{x}_{true} \)).

At the 90% confidence level, the true mean is estimated to lie between 58.79 and 63.45. For the 95% confidence level, the range narrows slightly to between 58.32 and 63.92. The most conservative estimate is at the 99% confidence level, where the true mean is expected to fall between 57.39 and 64.85.

The conclusion drawn from this analysis emphasizes the risk associated with the true mean being lower than 58.79%—a 5% risk at the 95% confidence level. However, it also asserts a 95% confidence that the true mean exceeds 58.50%, reinforcing the reliability of the process in meeting or surpassing the target.

This slide is particularly relevant for decision-makers who need to assess the reliability of process performance metrics. It provides a clear statistical basis for understanding the likelihood of achieving desired outcomes, which can inform operational decisions and strategic planning. The visual representation of the confidence intervals further aids in grasping the implications of the data, making it a valuable tool for executives focused on process improvement and quality assurance.

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Strategic Planning Process Improvement Six Sigma