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Basic Statistics for Data Analysis / Module 6

Module 6 checkpoint

Module 6 Checkpoint: Probability, Randomness, and Variation

Scenario

A process fails about 5% of the time. In the last 20 runs there were three failures, and someone concludes the process is getting worse.

Questions

  1. How many failures would you expect in 20 runs?
  2. Is three failures surprising enough to conclude anything? Say why.
  3. What would make you take the claim more seriously?
  4. Explain in one sentence why a run of three failures can happen with no change in the process.
  5. What would you do next, and what would you not say yet?

Pass Standard

You pass when you can distinguish ordinary variation from a change in the process, and say what evidence would separate them.