# Regression Between Defect Rate and Per Unit $ Value

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- This topic has 4 replies, 4 voices, and was last updated 1 year, 10 months ago by Hemanth.

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- September 4, 2018 at 12:36 am #56085

qaziParticipant@sameerqazi**Include @sameerqazi in your post and this person will**

be notified via email.Hi Members,

I am trying to conduct analysis between a forecast defect rate and TCQ/Unit cost.

Can we conduct regression analysis between the above two.

Usually $ values are never used in regression.

Looking forward to thoughts from the forum.rgds

Sam0September 4, 2018 at 8:58 am #203005

Robert ButlerParticipant@rbutler**Include @rbutler in your post and this person will**

be notified via email.Yes you can. There are no restrictions on the distributions of the X’s or the Y’s in a regression analysis. As for “never” using dollar values in a regression equation – how would you propose to identify an optimum combination of ingredients for, say a plastic compound, such that the dollar cost per pound was minimized other than using the X’s to predict the final dollar cost. In short – perhaps someone has told you this is never done but whomever offered that opinion is wrong.

0September 11, 2018 at 11:31 am #203016

Mike CarnellParticipant@Mike-Carnell**Include @Mike-Carnell in your post and this person will**

be notified via email.@rbutler Robert “whomever offered that opinion is wrong.” Very nice. You are always to tactful (generally). Had to smile when I saw this one.

0September 16, 2018 at 2:13 am #203035

Chris SeiderParticipant@cseider**Include @cseider in your post and this person will**

be notified via email.usually $ values not used in regression? ….why not

anyways, I would expect COQ to have at least be part of a multiple regression with parts or $ since the basic COQ would involve them in the calculation. Of course, maybe the COQ could be “recorded wrong” or have bad assumptions.

0September 16, 2018 at 5:17 am #203037

HemanthGuest@hemanthsub**Include @hemanthsub in your post and this person will**

be notified via email.Technically speaking, you can use any parameter in regression, dollar value is no exception. However, the question is how useful is the $ value when you run the regression for processes.

Remember, $ value is a derived parameter based on consumption and unit rate. Hence, its always useful to apply some caution with $ figures as they can get confounded.0 - AuthorPosts

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