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Confidence level

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  • #37264

    leroy
    Participant

    Could someone please explain confidence level and how it is determined? Is ther a formula to determine 95% CONFIDENCE? I am trying to implement a process change at work. I need to determine how many unit should be tested in this eperiment  to show that i can reliably produce an outcome atleast equal to my control condition.

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    #109468

    Dennis
    Participant

    Yes, there is a basic statistical formula for computing confidence values. Sample size is needed to determine your probability value

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    #109470

    Nitesh
    Participant

    Your P -Value would determine your confidence level. Generally, if P Value is less than 0.05 you reject the Null Hypothesis in favour of Alternate Hypothesis.
    Example: Assume your Null hypothesis as: “nothing has changed” then if your P Value is 0.05 it would mean 5% risk in saying that something has changed. –OR–  95% CONFIDENCE in saying that it has changed.
    This is how you can proceed and gaurantee decision…..

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    #109476

    Dog Sxxt
    Participant

    Your P -Value would determine your confidence level. Generally, if P Value is less than 0.05 you reject the Null Hypothesis in favour of Alternate Hypothesis.
    1. You are talking the right or left side tail?
    2. P = 0.025 shall be used for a two-tail normal distribution if your null hypothesis is “nothing has changed”.

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    #109483

    jimbo
    Participant

    Leroy,
    There is a formula for calculating the 95% Confidence Interval for data.  A confidence interval is calculated using four pieces of information:  1) The mean (X), 2) The critical z distribution value (z*), 3) The standard deviation of your sample or population (s) and 4) The number of data points in your sample or popultation (n).  Here’s the formula:
    X +  z* (s/sqrt (n))
    If you’ve never used a z table before, you  might have some difficulty understanding that concept, but any good textbook on inferential statistics should be able to help you further.
    Jimbo

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