A New Method for Constructing Confidence Intervals for the Index CPM

(2001), Proceedings of the 5th Hellenic-European Conference on Computer Mathematics and its Applications, Athens, Greece, E.A. Lypitakis (ed.), 832-838

7 Pages Posted: 8 Jul 2016

See all articles by Michael Perakis

Michael Perakis

Athens University of Economics and Business

Evdokia Xekalaki

Athens University of Economics and Business

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Date Written: 2001

Abstract

In the statistical literature on the study of the capability of processes through the use of indices, Cpm introduced bya Chan et al appears to have been one of the most widely used capability indices and its estimation has attracted much interest. In this article, a new method for constructing approximate confidence intervals for this index is suggested. The method is based on an approximation of the noncentral chi-square distribution, which was proposed by Pearson. Its coverage appears to be more satisfactory compared to that achieved by any of the two most widely used methods that were proposed by Boyles. This is supported by the results of an extensive simulation study.

Keywords: Process capability indices, noncentral chi-square distribution, approximate confidence intervals

Suggested Citation

Perakis, Michael and Xekalaki, Evdokia, A New Method for Constructing Confidence Intervals for the Index CPM (2001). (2001), Proceedings of the 5th Hellenic-European Conference on Computer Mathematics and its Applications, Athens, Greece, E.A. Lypitakis (ed.), 832-838, Available at SSRN: https://ssrn.com/abstract=2804911

Michael Perakis

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

Evdokia Xekalaki (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
GR-10434 Athens
Greece

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