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Topic Regression Between Defect Rate and Per Unit $ Value

Regression Between Defect Rate and Per Unit $ Value

Home Forums General Forums Tools & Templates Regression Between Defect Rate and Per Unit $ Value

This topic contains 4 replies, has 5 voices, and was last updated by  Hemanth 1 week, 2 days ago.

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  • #706924 Reply

    qazi
    Participant
    Reputation - 23
    Rank - Aluminum

    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
    Sam

    #706931 Reply

    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.

    #706965 Reply

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

    #707008 Reply

    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.

    #707010 Reply

    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.

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