Leading the process of hypothesis testing

URN: SEMBIT431
Business Sectors (Suites): Business Improvement Techniques Suite 4
Developed by: Enginuity
Approved on: 2023

Overview

This standard covers the competencies required for leading the process of hypothesis testing.  It involves directing the calculation of the correct sample size to ensure the statistical validity of the hypothesis test and leading the production of a suitable sampling plan to reduce systematic errors.  The tests should be conducted on a variable/process in a Six Sigma project where the actual statistics from data collected is compared with the calculated statistics so that a decision can be reached as to which hypothesis is true.  Typically tests that can be carried out could be F-Test, Chi-Square test, normality tests, T-test, Levene's test, Bartlett's test, contingency table, one-way ANOVA.  You will be required to lead the production and approval of a hypothesis test report on the variable/process studied.

Your responsibilities will require you to comply with organisational policy and procedures for the activities undertaken and to report any problems with the activities that you cannot solve or are outside your responsibility to the relevant authority.  You will need to ensure that all the necessary documentation/visual representation is completed accurately and legibly.  You will be expected to take full responsibility for your own actions within the activity and for the quality and accuracy of the work that you produce.

Your underpinning knowledge will provide a good understanding of hypothesis testing and provide an informed approach to the techniques and procedures used.  You will need to understand the principles and application of hypothesis testing in adequate depth to provide a sound basis for carrying out the activities to the required criteria.

Applying and advising on safe working practices will be a key issue throughout.


Performance criteria

You must be able to:

  1. work safely at all times, complying with health and safety and other relevant regulations, directives and guidelines
  2. direct sample size selection to ensure the statistical validity of an hypothesis test and check the calculation for the correct sample size required for the test
  3. lead the production of a suitable sampling plan to reduce systematic errors
  4. lead the hypothesis test on a variable/process in a Six Sigma project
  5. obtain and confirm the actual statistic from data collected
  6. use the appropriate test to compare the calculated statistic against actual statistic and confirm which hypothesis is true
  7. lead the production of and approve a hypothesis test report on the variable/process studied
  8. implement and monitor the progress of the hypothesis testing

Knowledge and Understanding

You need to know and understand:

  1. how to work safely at all times, complying with health and safety and other relevant regulations and guidelines
  2. what is hypothesis testing, why we need to use hypothesis testing and how this benefits a Six Sigma improvement project
  3. how to plan the resources and time needed to carry out the agreed activity
  4. why we need to identify a suitable sample size
  5. how to calculate a suitable sample size
  6. what is meant by Alpha risk, Beta risk and Delta/Sigma ratio
  7. what is meant by practical difference and statistical difference
  8. how to conduct a hypothesis test
  9. how to calculate test statistics such as mean, median, mode, standard deviation, range and variance
  10. what are a population and a sample
  11. what is meant by the null hypothesis
  12. what is meant by the alternate hypothesis
  13. how to determine the correct statistic from the following F-test, Chi-Square test, Normality tests, T-test, Levene's test, Bartlett's test, contingency tables, one way ANOVA
  14. the extent of your own authority within the project and whom you should report to, in the event of problems that you cannot resolve

Scope/range


Scope Performance

1.    Lead the activities within your area of responsibility to include all of the following:

    1. set out and communicate the purpose of the improvement activities
    2. involve the team in planning how the improvement activity will be achieved
    3. ensure each team member has individual objectives and understands how these objectives contribute to the overall improvement objective
    4. provide advice and support the team to achieve both team and individual improvement objectives
    5. motivate the team to present their own improvement ideas
    6. encourage the team and/or individuals to take the lead where appropriate
    7. agree the implementation of the improvement ideas
    8. negotiate any physical and/or financial resources required to implement the improvement activity (where appropriate)
    9. monitor the progress of improvement activities
    10. deal with any organisational problems identified during the improvement activity

 

2.    Confirm for a hypothesis test all of the following:

    1. the Delta/Sigma ratio
    2. the Alpha risk
    3. the Beta risk

       

3.    Confirm all the following:

    1. null hypothesis
    2. alternative hypothesis
    3. test statistic

       

4.    Confirm the correct statistic from one of the following:

    1. F-test
    2. Chi-Square test
    3. normality tests
    4. T-test
    5. Levene's test
    6. Bartlett's test
    7. contingency table
    8. one way ANOVA



Scope Knowledge


Values


Behaviours


Skills


Glossary


Links To Other NOS


External Links


Version Number

3

Indicative Review Date

2028

Validity

Current

Status

Original

Originating Organisation

Enginuity

Original URN

SEMBIT431

Relevant Occupations

Associate Professionals and Technical Occupations, Business and Finance Associate Professionals, Business Management, Business, Administration and Law

SOC Code

2127

Keywords

Engineering; business; improvement; techniques; hypothesis testing; F test; Chi Square; normality; Levene’s