In: Statistics and Probability
If a company allows a maximum part failure rate of 1 out of 2,500,000 parts. To insure this quality goal, failed parts must be how many standard deviations away from the mean? (Use Excel to calculate the answer and give the Excel formula you used.)
Let's find probability and then find the part failure rate of x out of 2,500,000 parts in excel.
The formulae used on the above excel-sheet are as follows:
Note that for 5 sigma we get expected number of defectives as 1.43, which is greater than 1
so we need to use 6-sigma so we get less than 1 defective.
So to insure this quality goal, failed parts must be 6 times standard deviations away from the mean.