Technological Institute of the Philippines

College of Engineering and Architecture

Industrial Engineering Department

Laboratory Manual

IE 005 – STATISTICAL CONCEPTS, THEORIES AND ANALYSIS

FOR INDUSTRIAL ENGINEERING 2 LABORATORY

Engr. Romalyn L. Galingan

Engr. Yoshiki B. Kurata
Engr. Arriane A. Palisoc

Copyright 2019

STATISTICAL CONCEPTS, THEORIES AND ANALYSIS

FOR INDUSTRIAL ENGINEERING 2 LABORATORY
 PREFACE

This course is intended for students taking up the course in statistical analysis and design of experiments.
The course is about statistical concepts and theories and how is it applied to different applications of data
analysis. It covers the topics on hypothesis testing, linear regression, multiple regression, correlation,
analysis of variance, and design of experiments with different model situations.

The laboratory exercises on this manual uses the Minitab 18 Statistical Software to better understand the
data being analyzed and to appreciate the what if scenario that could be easily applied in any discipline.

The objective of this laboratory manual developed by the authors is for the students to appreciate the
importance of statistics in analyzing different kinds of engineering data given the desired level of objectives.
Moreover, it is the aim of the exercises to acquire skills in modeling and evaluating the engineering data
through Minitab 18 Statistical Software and be able to interpret the results.

THE AUTHORS
 TABLE OF CONTENTS

Exercise # Title Page

1 Hypothesis Testing – One sample z-test

2 Hypothesis Testing One sample t-test

3 Hypothesis Testing – Two sample t-test and Paired t-test

4 Hypothesis Testing – Chi-square Test

5 Correlation

6 Simple Linear Regression

7 Multiple Regression

8 One-way Analysis of Variance

9 Analysis of Variance
(General Linear Model using Tukey-Kramer Method)

10 General Factorial Design

11 2k Factorial Design

12 Response Surface Methods

13 Case Study: Design of Experiments

 ACCEPTABLE USE POLICY FOR LABORATORY AND SHOP USERS
(Students and Faculty Members)

1. Faculty members shall always inform the technician of his intent to use a laboratory room. The
Laboratory Custody Form for the room shall properly accomplish.

2. Students shall not be allowed to do a laboratory or shop activity without the supervision of a faculty
member. Faculty members shall not leave their classes while students are doing the laboratory or shop
works.

3. No equipment shall be operated without the permission of the faculty member.

4. No equipment shall be transferred to other locations without the consent of the laboratory and shop
officer.

5. Students shall not be allowed to stay in the laboratory or shop rooms beyond the laboratory class
schedule.

6. Students and Faculty Members shall always observe the 5S program of the school inside the laboratory
and shop rooms.

7. Faculty members shall see to it that the machine or equipment is clean and also switch off before leaving
the laboratory or shop rooms. Also, all borrowed tools and devices must be returned to the tool stock room.

8. In case of damage or losses of tool / devices / machines / equipment, the borrower shall be held
responsible.

9. Eating, drinking and bringing in foods and drinks insider the laboratory or shop rooms are strictly
prohibited.

10. Safety shall always be observed and practiced inside the laboratory.
 Laboratory Exercise No. 1

Hypothesis Testing – One Sample z Test

Course : Experiment No. :

Group No. : Section :
Group Members : 1. Date Performed :
2. Date Submitted :
Instructor :
1. Objective(s)

To be able to fully understand the use of the Minitab 18 statistical software in solving probability
problems.

2. Intended Learning Outcomes (ILOs)

At the end of the exercise, the students are expected:

1. To establish a good foundation of ergonomics as a discipline for industrial engineering students

and professionals;

2. To demonstrate skills in gathering details and information pertaining to human factors and
ergonomics; and

3. To understand fully the basic principles and theories that governs the ergonomics discipline.

3. Discussion

Use 1-Sample Z to estimate the mean of a population and to compare it to a target value or a reference
value when you know the standard deviation of the population. Using this analysis, you can do the
following:

1. Determine whether the population mean differs from the hypothesized mean that you specify.
2. Calculate a range of values that is likely to include the population mean.
For example, a quality analyst uses a 1-sample Z-test to determine whether the average thread length of
bolts differs from the target of 20 mm. If the mean differs from the target, the analyst uses the confidence
interval to determine how large the difference is likely to be and whether that difference has practical
significance.
Where to find this analysis
To perform a 1-Sample Z-test, choose Stat > Basic Statistics > 1-Sample Z.

Data considerations for 1-Sample Z

To ensure that your results are valid, consider the following guidelines when you collect data, perform
the analysis, and interpret your results.

The population standard deviation is known

If you do not know the standard deviation of the population, use 1-Sample t.

The data must be continuous.

Continuous data has an infinite number of values between any two values.

The sample data should not be severely skewed, and the sample size should be greater than 20
If your sample size is greater than 20 and the underlying distribution is unimodal and continuous, the
hypothesis test performs appropriately even if the data are mildly skewed. If your sample size is less
than 20, you should graph the data to check for skewness and unusual observations.

4. Materials and Equipment

 Minitab 18
 Computer

5. Procedure

A scientist for a company that manufactures processed food wants to assess the percentage of fat in the
company's bottled sauce. The advertised percentage is 15%. The scientist measures the percentage of fat in
20 random samples. Previous measurements found that the population standard deviation is 2.6%.

The scientist performs a 1-sample Z-test to determine whether the fat percentage differs from 15%.

1. Open the sample data, FatContent.MTW.

2. Choose Stat > Basic Statistics > 1-Sample Z.
3. From the drop-down list, select One or more samples, each in a column and enter Percent Fat.
4. In Known standard deviation, enter 2.6.
5. Select Perform hypothesis test.
6. In Hypothesized mean, enter 15.
 7. Click OK.

6. Data and Results

7. Data Analysis and Conclusion

Interpret the key results for 1-Sample Z

Step 1: Determine a confidence interval for the population mean

First, consider the sample mean, and then examine the confidence interval.

The mean of the sample data is an estimate of the population mean. Because the mean is based on
sample data and not on the entire population, it is unlikely that the sample mean equals the population
mean. To better estimate the population mean, use the confidence interval.

The confidence interval provides a range of likely values for the population mean. For example, a 95%
confidence level indicates that if you take 100 random samples from the population, you could expect
approximately 95 of the samples to produce intervals that contain the population mean.

Key Result: Confidence Interval

Step 2: Determine whether the test results are statistically significant

To determine whether the difference between the population mean and the hypothesized mean is
statistically significant, compare the p-value to the significance level. Usually, a significance level
(denoted as α or alpha) of 0.05 works well. A significance level of 0.05 indicates a 5% risk of concluding
that a difference exists when there is no actual difference.
P-value ≤ α: The difference between the means is statistically significant (Reject H 0)
If the p-value is less than or equal to the significance level, the decision is to reject the null
hypothesis. You can conclude that the difference between the population mean and the
hypothesized mean is statistically significant.

P-value > α: The difference between the means is not statistically significant (Fail to reject H 0)
If the p-value is greater than the significance level, the decision is to fail to reject the null
hypothesis. You do not have enough evidence to conclude that the difference between the
population mean and the hypothesized mean is statistically significant.

Key Result: P-Value

CONCLUSION:
8. Reflection on the Attainment of Intended Learning Outcomes (ILOs):
9. Assessment Rubric
 Laboratory Exercise No. 2

Laboratory Exercise No. 2 Hypothesis Testing - One Sample t Test

Course : Experiment No. :

Group No. : Section :
Group Members : 1. Date Performed :
2. Date Submitted :
3. Instructor :
4.
5.
1. Objective(s)

To familiarize the students with the use of Minitab in performing hypothesis testing – One Sample t-test

2. Intended Learning Outcomes (ILOs)

At the end of the exercise, the students are expected:

1. Determine whether the population mean significantly differs from the hypothesized mean.
2. Calculate a range of values that is likely to include the population mean.
3. Make a conclusion about the results of the hypothesis test.

3. Discussion

Overview for 1-Sample t

Use 1-Sample t to estimate the mean of a population and to compare it to a target value or a reference
value when you do not know the standard deviation of the population.
For example, a quality analyst uses a 1-sample t-test to determine whether the average thread length of
bolts differs from the target of 20 mm. If the mean differs from the target, the analyst uses the confidence
interval to determine how large the difference is likely to be and whether that difference has practical
significance.

Where to find this analysis

To perform a 1-sample t-test, choose Stat > Basic Statistics > 1-Sample t.

Data considerations for 1-Sample t

To ensure that your results are valid, consider the following guidelines when you collect data, perform
the analysis, and interpret your results.

1. The population standard deviation is not known

If you know the standard deviation of the population, use 1-Sample Z because the Z-test has more
power than the t-test.

2. The data must be continuous

Continuous data has an infinite number of values between any two values.

3. The sample data should not be severely skewed, and the sample size should be greater than
20
If your sample size is greater than 20 and the underlying distribution is unimodal and continuous, the
hypothesis test performs appropriately even if the data are mildly skewed. If your sample size is less
than 20, you should graph the data to check for skewness and unusual observations.

4. The sample data should be selected randomly

In statistics, random samples are used to make generalizations, or inferences, about a population. If your
data are not collected randomly, your results may not represent the population.

5. Each observation should be independent from all other observations

If you have paired or dependent data, such as measurements of a bearing taken with two different
calipers, use Paired t instead.

4. Materials and Equipment

 Minitab
 Reference Book
 Computer

5. Procedure

An economist wants to determine whether the monthly energy cost for families has changed from the
previous year, when the mean cost per month was $200. The economist randomly samples 25 families
and records their energy costs for the current year.

The economist performs a 1-sample t-test to determine whether the monthly energy cost differs from
$200.

1. Open the sample data, FamilyEnergyCost.MTW.

2. Choose Stat > Basic Statistics > 1-Sample t.
3. From the drop-down list, select One or more samples, each in a column and enter Energy
Cost.
4. Select Perform hypothesis test.
5. In Hypothesized mean, enter 200.
6. Click OK.

6. Data and Results

7. Data Analysis and Conclusion

Interpret the key results for 1-Sample t

Step 1: Determine a confidence interval for the population mean

First, consider the sample mean, and then examine the confidence interval.

The mean of the sample data is an estimate of the population mean. Because the mean is based on
sample data and not on the entire population, it is unlikely that the sample mean equals the population
mean. To better estimate the population mean, use the confidence interval.

The confidence interval provides a range of likely values for the population mean. For example, a 95%
confidence level indicates that if you take 100 random samples from the population, you could expect
approximately 95 of the samples to produce intervals that contain the population mean.

Key Result: Mean, 95% Confidence Interval

Step 2: Determine whether the test results are statistically significant

To determine whether the difference between the population mean and the hypothesized mean is
statistically significant, compare the p-value to the significance level. Usually, a significance level
(denoted as α or alpha) of 0.05 works well. A significance level of 0.05 indicates a 5% risk of concluding
that a difference exists when there is no actual difference.

P-value ≤ α: The difference between the means is statistically significant (Reject H 0)

If the p-value is less than or equal to the significance level, the decision is to reject the null
hypothesis. You can conclude that the difference between the population mean and the
hypothesized mean is statistically significant.

P-value > α: The difference between the means is not statistically significant (Fail to reject H 0)
If the p-value is greater than the significance level, the decision is to fail to reject the null
hypothesis. You do not have enough evidence to conclude that the difference between the
population mean and the hypothesized mean is statistically significant.

Key Result: P-Value

CONCLUSION

8. Reflection on the Attainment of Intended Learning Outcomes (ILOs):