Quality Management for Organizations Using Lean Six Sigma Techniques

209Chapter twelve: Fundamental statisticsandbasic quality tools

where:

y is the predicted response, or dependent variable

x

1

is the predictor, or independent variable

β

0

and β

1

are the regression coefcients for the transfer function

β

0

=y-intercept of regression line

β

1

=slope of regression line

ε is an error term

Assume an analysis of a constant variable. Gather data that summarize it according to the

constant variable. An equation can be developed according to the function of the variable

using simple regression. Note that both the input and output variables are continuous,

indicating that we are able to apply regression for the analysis.

12.4.6.1 Simple linear regression model

Simple linear regression model has a straight line that represents ...