Zero-Coupon Bonds: Pros and Cons
Zero-coupon bonds are those bonds that are sold at a deep discount to their face value. This means that these bonds do not receive any periodic interest. Instead, the investors have to invest a lump sum amount at the beginning of their investment and get paid a higher lumpsum amount at the end of their […]
Game Changing Digital Governance Ideas: The Case Study of Aadhar in India
What is Aadhar and why it can be Transformative to India? Not a day passes without Indians being reminded of the need to link their Aadhar number with the Banks and Mobile operators, in addition, to continue availing of the various governmental schemes. Indeed, Aadhar has become a household name in India as well as […]
Use of Price to Revenue Ratio in Valuing Sports Franchises
The valuation of a sports franchise is a very difficult task. This is because a lot of the rules that are applicable while valuing other businesses are not relevant when it comes to valuing sports franchises. One such example is the widespread usage of the price-to-revenue ratio in deriving the valuation of a franchise. In […]
Why Viewing Global Trade in Zero Sum Terms is Shortsighted and Self Defeating
Trade Wars and Zero Sum Thinking The ongoing trade wars between the United States, on one hand, and the rest of its trading partners, including China, Canada, and the EU or the European Union stem from a basic misinterpretation of global trade in Zero Sum terms or I win, You Lose kind of thinking. As […]
Socialism and Prosperity in the Nordic Countries
The United States Democratic Party has been praising the economic arrangement in Nordic nations for a very long time. Right from Bill Clinton to President Obama, they were all fans of the so-called Nordic socialism and wanted to introduce the model in America as well. The Democratic primaries were riddled with both Hillary Clinton as […]
Once the Scatter plot has been used to find out the correlation between the inputs being measured as well as the desired outputs, it is now time to come up with an equation which shows the precise relationship. This is called Regression. Regression is a technique which summarizes the relationships observed in the Scatter plot in the form of an equation.
In most Six Sigma projects, today the process of coming up with the regression equation is computerised. Hence the personnel need not understand the details that are involved within it. However they need to be well versed with the various types of regression equations. They are as follows:
A typical linear regression equation would look like:
Y = 1.5 + 2x
The Six Sigma team can now answer questions about the effect that the input variable has on the output. They can then decide as top whether the effect is significant when compared to the other variables. They can also decide the correct level of input (x) that needs to be maintained if an output (y) needs to be achieved.
For example:
Service Time = 3 minutes + 2.3 times × Handle time
Let’s say we want the service time to be 7 minutes as per the results we have got from the Voice of Customer. Therefore the handle time should be :
7 - 3 minutes = 2.3 × Handle time
4 minutes = 2.3 × Handle time
4/2.3 = Handle time
Therefore handle time must be 1.74 minutes if the process needs to meet the expectations of the customers.
This is how the regression equation can help us understand whether a factor is significant. It also helps us work the level of inputs required to get the desired output.
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What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
February 12, 2025
