Mathematics Asked on January 12, 2021
What is the smallest sigma value (out of $1sigma$, $2sigma$, $3sigma$, $4sigma$, $5sigma$, $6sigma$) we can use when we want a less than 0.3% defect ratio?
My idea is to use $68-95-99.7$ rule, and obtain $3sigma$ as an answer. Is it correct approach, or has missing parts?
Allow me to ask you here (since I can't comment yet) why would you choose $6σ$.
Since 99.7% means less than 0.3% defect ratio, maybe if we take an additional $σ$ only we would be in a safe place, in my opinion. Therefore, my answer would be $4σ$ (3 is already safe for your question).
New Information
As I mentioned, since we are talking about defects, it's more about the Six Sigma and the Sigma Level. Therefore, if we go to the wikipedia page, we can see that the value should be between 4 and 5 Sigma Levels.
Now, we go back to our original SIGMAs, which are easier to understand. Our goal is to get 0.3% defect, or 99.7% good. Therefore, we take our table of values we know that within 3σ we get 0.9973. Therefore, the real value should be a bit less than $3σ$. But we can go with $3σ$
Being Very Precise
Table for Z-value if you read the table you will find 2.75 Sigma for 0.99702.
Reference
Correct answer by ombk on January 12, 2021
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